Jelurida co-founder Lior Yaffe claims that a low participation rate could allow whales to crash the network. But an Ethereum developer says the attack would be much more expensive.
Yaffe considered a situation where the network participation rate is low and some whales are quietly using multiple accounts. Since the network has a minimum participation rate of 66%, if a whale drops out suddenly—knocking it below this threshold—it could cause issues. And if there’s not much money being staked, this could be surprisingly feasible.
“Let’s assume that 10% of the ETH is now staking and that network participation is 75% (which is pretty much what we see on testnet now). In this case to drop the participation rate by 9% to halt the chain only requires control of 0.9% of the ETH in circulation. Certainly achievable by a large whale or a mid size exchange,” Yaffe told Decrypt.
“So all you need in order to stop the network maliciously, is to hold the difference between the current participation level [and] 66%,” he added.
What does "participation rate" mean?