There’s an interesting fact about staking that most outsiders don’t realize: 99% of PoS networks are dominated by foundation controlled staking, making them effectively centralized. The only real exceptions are Cardano and Ethereum. People usually think validators run nodes with delegations directly from regular holders, but that’s not how it really works. In most cases, the foundation handpicks which validators get the delegation. That’s why across most chains, you keep seeing the same set of companies acting as validators. These professional outfits know how to maintain good relationships with the foundation, lobby when needed, and present themselves as “trusted” operators and that’s how they secure their spots. That means the foundation and validators have a boss–subordinate relationship. Validators are basically running nodes with delegation given by the foundation. Naturally, that puts validators in a position where they can’t go against the foundation. If the foundation pulls their stake, they’re done. So the stake from everyday holders doesn’t really matter much to their business. Why? Because most chains only allow around a hundred validators to actually produce blocks. Big names like Sui, Aptos, Hyperliquid fall into this category too. That means if you don’t get foundation delegation early on, it’s nearly impossible to break into the top 100. The only other option is to buy up a ton of tokens yourself, which costs a fortune. Basically, the foundation that issued the token is the real power holder controlling protocol development, operations, and validator delegation. The only networks that don’t follow this structure are Cardano and Ethereum. But even between those two, there’s a difference. Cardano’s staking setup is simpler, safer, and has no slashing, so participation is way more active. Even Vitalik has admitted he doesn’t stake all of his ETH. The reason? To stake on Ethereum you have to either run your own validator node which locks up your funds and requires technical know-how or use a liquid staking service like Lido, which exposes you to slashing risk depending on the operator. Charles, on the other hand, stakes all of his ADA. And anyone involved in the Cardano ecosystem knows exactly why. Some might argue that having no lock-up makes staking too flexible and could cause issues. But in reality, this structure actually strengthens the protocol. Stake Pool Operators have to actively earn delegations by sharing ecosystem updates, contributing to the protocol, or hosting community events to build trust. In Cardano, you don’t need the foundation’s blessing. All you need is the community’s support, and you can run a node and build a business around it. That’s why I believe this is what a genuinely decentralized network looks like. Anyone can run a staking pool, community involvement is the key, and the community has real power. That’s why Cardano’s community is so vibrant, and participation is far higher compared to other chains. I think this is the ultimate form of a blockchain network. (source: reddit)