WHAT’S SO SIGNIFICANT ABOUT 33% IN LSTS

Summary from the TLDR Crypto newsletter

This thread dives into why LSTs getting to 33% staking share can lead to disruptions in the network. It discusses how blockchains operate on peer-to-peer consensus systems and the need to account for potentially malicious nodes. The calculation n >= 3f + 1 helps ensure system stability, where n is the number of nodes, and f represents faulty nodes. Essentially, to maintain operational integrity, no party should control more than a third of the stake.