The Proof of Stake Alliance (POSA), an advocacy group of firms and organizations in the business of staking on blockchains like Ethereum, published an updated list of standards on Thursday that they say will ensure consumer protections and promote responsible innovation.
The new "staking principles" have been signed off by 18 industry players, including some well-known entities like Ava Labs, Blockdaemon, Coinbase, Lido, Polychain, Paradigm and Rocketpool.
The list, prepared with the assistance of Paradigm’s Policy Lab, was updated "in light of the rapid advancements in the staking space and the need for updated best practices," according to a press release.
The standards are intended to update an original set of principles released in 2020, according to the press release. They call for clearer communication from service providers, giving users total control over how much of their assets to stake, and the need to precisely describe the responsibilities of service providers.
“Amid rapid technological advancement, self-regulation from leaders of the proof of stake ecosystem is essential,” Evan Weiss, founder of POSA, said in the press release. “The updated POSA principles underscore the ecosystem's commitment to clarity and responsibility, especially in a time of increased scrutiny and misconceptions. Together, we aim to build trust, inform regulations, and champion the boundless potential of the technology.”
Read more: We Need to Reclaim the Narrative on Staking
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.