Vitalik Buterin Proposes Validator Anonymity Overhaul for $71B Ethereum Staking on July 6

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Vitalik Buterin, Ethereum co-founder, formally proposed on July 6, 2026, an overhaul to make validator identities on the network effectively untraceable using zero-knowledge STARK proofs. The proposal, dubbed 'The Extremely Lean Chain,' redesigns Ethereum's consensus layer across two phases: Phase 1 replaces epoch-by-epoch reward accounting with daily STARK-proven balances indexed by 5-byte identifiers; Phase 2 re-randomizes validator identities daily so only validators can link their past and present activity. The proposal affects approximately $71 billion in Ethereum staking, which reached an all-time high of 40.5 million ETH at the time of announcement, according to CryptoQuant data.
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