- Vitalik Buterin said he would use social consensus to burn the stake of any crypto service providers who agree to censor the Ethereum protocol.
- Data shared by the crypto community shows that 66% of Beacon chain validators are likely to comply with the OFAC regulations.
- Censorship concerns grew as Circle blocked addresses associated with Tornado Cash after OFAC placed Tornado Cash on a sanctions list.
Vitalik Buterin, a co-founder of Ethereum, said in a tweet that he voted for the option to burn the stakes of crypto service providers that would agree to censor the Ethereum protocol.
Buterin chose in a Twitter poll by blogger Eric Wall on August 15, 2022, where he asked the Ethereum community what their choice would be if regulators asked validators to censor a decentralized protocol.
Notably, the survey expands upon one by Berlin-based developer Lefteris Karapetsas, which inquires about the likelihood that cryptocurrency service providers in the US and Switzerland would censor the Ethereum protocol by declining to validate specific transactions at the behest of authorities.
Wall, on his part, asked the crypto Twitter community their reaction should the above companies opt to censor the network. Responding to Wall’s poll, Buterin said, “[For what it is worth], I voted X in your above poll.”
Option X says, “Consider the censorship an attack on Ethereum and burn their stake via social consensus,” while option Y says, “Tolerate the censorship.”
The assessment by Karapetsas and Wall came up after Twitter user @eylonverse shared data that 66% of Beacon chain validators are likely to comply with the US Office of Foreign Assets Control (OFAC) regulations.
OFAC had restricted Tornado Cash, claiming that it had contributed significantly to the support of cyber-terrorist acts, making it possible for criminal actors to conceal the trail of their fraudulent bitcoin transactions.
Currently, 62% of the crypto community on Twitter has voted to burn the stakes of service providers that may think of censoring the network.