Ethereum News Today: Vitalik Buterin Proposes FOCIL to Counter Ethereum Transaction Centralization

Vitalik Buterin, co-founder of Ethereum, has proposed a new mechanism aimed at strengthening the blockchain’s neutrality and resistance to censorship. The solution, known as Fork-Choice Enforced Inclusion Lists (FOCIL), is designed to counteract the centralization of transaction prioritization by block builders. Buterin warns that the growing concentration of power among a few builders threatens the decentralized ethos of Ethereum. FOCIL seeks to address this by redefining how transactions are included in blocks [1].

The FOCIL proposal operates by increasing the number of proposers per slot from one to 17—comprising one primary proposer and 16 attestors. The primary proposer defines the order of transactions, while the attestors are required to include the transactions from a predefined list. This multi-proposer model ensures that even if the main validator filters or excludes certain transactions, the auxiliary proposers must include them. The result is a system where no single actor can unilaterally censor transactions, reinforcing Ethereum’s neutrality and reducing the influence of centralized block builders [1].

Buterin envisions FOCIL as a tool with broader applications beyond transaction inclusion. By reducing the load on auxiliary validators, the mechanism could support innovations such as smart wallets and privacy protocols. These use cases could further reduce reliance on centralized intermediaries within the Ethereum ecosystem [1].

However, the legal implications of FOCIL have raised concerns. Ameen Soleimani, a developer at Reflexer Labs, has highlighted a potential legal risk: the mechanism could force U.S. validators to include transactions linked to sanctioned addresses, such as those associated with Tornado Cash. Such an obligation could expose both validators and developers to regulatory action under AML/CFT laws. Soleimani has even suggested that a U.S. government official would support FOCIL as a means to legally challenge validators [1].

Beyond legal risks, Soleimani points out a structural issue: FOCIL relies on the altruism of validators to include sensitive transactions without clear incentives or guarantees. While the concept aligns with Ethereum’s decentralized vision, its practical feasibility remains uncertain [1].

Despite these concerns, Ethereum’s ability to adapt to regulatory challenges has historically been a key factor in its appeal to institutional investors. The network has shown flexibility in balancing decentralization with legal compliance, as demonstrated by innovations like Ethena’s USDe protocol. This adaptability is expected to play a critical role in Ethereum’s continued growth [2].

FOCIL is part of a broader series of upgrades aimed at reinforcing Ethereum’s institutional readiness. Upcoming developments such as the Pectra upgrade in May 2025 will introduce account abstraction and improved Layer 2 support, further enhancing the platform’s scalability and usability [2].

For investors, the implications are clear: Ethereum’s commitment to both regulatory resilience and technical innovation positions it as a strong long-term investment. While challenges remain—particularly around legal risks for validators—Ethereum’s capacity to evolve within legal boundaries while preserving its decentralized principles suggests a promising trajectory for continued value creation [2].

Source:

[1] Crypto: Vitalik Buterin Proposes a New Solution to Strengthen Ethereum’s Neutrality (https://coinmarketcap.com/community/articles/68ab036603dc01324d841e8d/)

[2] FOCIL and Ethereum's Path to Regulatory Resilience (https://www.ainvest.com/news/focil-ethereum-path-regulatory-resilience-2508/)