Who can control the staked ETH principle?


See Architecture

Under Normal Operations

The ETH stake principal is managed by LSP smart contracts. Various roles (such as the Initiator and Allocator) can initiate fund flows between LSP smart contracts, but cannot modify destination smart contract addresses.

Staking involves two types of keys: validators keys and withdrawal keys. Validator keys are used for cryptographic signing of attestations, while withdrawal keys are used to set Consensus Layer reward and withdrawal addresses. For Mantle LSP, the rewards and withdrawal address will be the LSP smart contract at the time of validator creation. This means the node operators (validators) do not have control over the staked ETH.

Under Emergency Scenarios

The Security Council Multisig can affect the flow of the underlying ETH through the following mechanism:

  • Upgrading the logic of all smart contracts

  • Changing the withdrawal addresses

  • Changing permissions

  • Changing variables

Depending on the stage of maturity and desired level of automation or security council intervention powers, the following pathways can be discussed with Mantle Governance:

  • Transfer of Security Council role to an on-chain DAO controller

  • Timelock on upgradability

  • Burning of upgrade keys

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