Censorship Resistance and Credible Neutrality at Issue

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October 30, 2024 – The Proof of Stake Alliance (POSA) today released a paper that explores the policy and legal implications of implementing unconditional inclusion lists on Ethereum, and whether they would make the network more or less credibly neutral. It describes how inclusion lists would be architected, as well as how this architecture might impact various base layer actors and the broader perception of Ethereum.

“While primarily focused on outlining the legal and policy implications of inclusion lists, this paper ultimately emphasizes the critical need to define credible neutrality in order to assess all proposed changes to Ethereum,” said Khushi Wadhwa, an author of the paper and head of product research and strategy at Predicate. “Establishing this neutrality is essential for maintaining stability and protecting network participants.”

The paper, developed by Wadhwa, Nikhil Raghuveera and Jane Khodarkovsky of Predicate and Arktouros, was reviewed by industry organizations, independent researchers, and policy experts including Brendan Malone at Paradigm, Mike Neuder at the Ethereum Foundation, and Michael Mosier at Arktouros. As the leading organization advocating for participants in the growing multi-billion dollar proof of stake ecosystem, POSA is now calling on other stakeholders in both the Ethereum and legal and policy communities to review the paper. 

"This paper should drive robust discourse on what it really means to preserve Ethereum’s core values of censorship resistance and credible neutrality while navigating the challenges of a fast-paced and dynamic legal and regulatory landscape,” said Jane Khodarkovsky, advisor to Predicate and partner at Arktouros, pllc, a boutique law and advisory firm focused on emergent technology, financial integrity, and civil society.  “I hope that it is a catalyst for more research on the topic."

Even though Ethereum exists as open technology many of its participants operate in regulated markets. Inclusion lists can have significant policy implications on Ethereum’s broader roadmap and usage, especially when building a global financial settlement system.

“It is important not to forget the regulatory and policy implications of technical decisions,” said Alison Mangiero, Executive Director of POSA. “As new proposals make the work of various base layer actors more nuanced, it is increasingly important to raise questions like the ones posed in this paper, which POSA is proud to publish and support.”

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