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Vitalik Buterin Backs Minimmit Over Casper FFG for Ethereum’s Consensus Layer

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • Minimmit achieves finality in one signing round, replacing Casper FFG’s two-round justification and finalization process. (truncate to fit — 105 chars)
  • The new gadget lowers fault tolerance from 33% to 17%, but raises the unilateral censorship threshold from 67% to 83%.
  • Buterin argues censorship poses a greater threat than finality reversion, as it lacks immediate, verifiable on-chain evidence.
  • Minimmit requires 83% of clients to share a bug before incorrect finalization occurs, giving developers a wider safety margin.

Minimmit has been put forward as a direct replacement for Casper FFG within Ethereum’s consensus layer. Ethereum co-founder Vitalik Buterin recently shared a detailed technical post comparing both finality gadgets.

Casper FFG has long served as a two-round finality mechanism on the network. The proposed system, by contrast, achieves finality in a single round of validator signatures.

The proposal is drawing attention as the Ethereum community continues to evaluate changes to its consensus architecture.

Why the New System Operates in a Single Round

Casper FFG asks each attester to sign a block on two separate occasions. The first signature “justifies” the block, and the second “finalizes” it.

Minimmit cuts this down to a single signing round. This makes the process more efficient for validators across the network.

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The change comes with a direct cost to fault tolerance, though. The new system’s threshold sits at 17%, compared to 33% under Casper FFG.

A smaller portion of malicious stake can therefore disrupt finality under the new model. Still, Buterin’s post makes the case that other properties of the system more than offset this drop.

In the post shared on X, Buterin described himself as a long-standing “security assumptions hawk” in Ethereum’s consensus research. He cited his past push for 49% fault tolerance under synchrony.

He also referenced his work on DAS for dishonest-majority-resistant data availability checks. Despite this record, he stated he is “even enthusiastic” about the proposed design.

The asynchronous network case also differs between the two systems. Under ideal 3SF, finality holds as long as an attacker controls less than 33% of stake.

The proposed gadget lowers that same protection to 17%. In both cases, any reversion of finality triggers massive slashing penalties against offending validators.

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Censorship Resistance and the Broader Security Picture

Buterin’s argument centers on identifying censorship as the more dangerous threat. Unlike finality reversion, censorship produces no immediate, publicly verifiable evidence against the attacker.

A reversion event, on the other hand, results in automatic, large-scale slashing. This asymmetry is a core reason behind his support for Minimmit’s design.

Both systems require an attacker to control over 50% of staked ETH to carry out censorship. The key distinction lies in what happens at higher thresholds.

In 3SF, an attacker above 67% can finalize the chain unilaterally, removing any coordination point for honest validators. The new system raises that threshold to 83%.

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Software bugs present another area where the proposed gadget holds an advantage. Under 3SF, a flaw shared by 67% of client software can accidentally finalize an incorrect chain state.

Minimmit raises that bar to 83%. This wider margin gives developers more time to identify and respond before errors become permanent.

Buterin also addressed the economic argument against finality reversion attacks. With 15 million ETH staked, reverting finality under 3SF would require slashing 5 million ETH, or roughly $10 billion.

He noted that the 17% baseline still represents an enormous deterrent on its own. From there, he argues the proposed system’s other properties make it the stronger overall consensus design for Ethereum.

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Crypto World

Bitcoin Drops Below $68K but Long-Term Holder Buying Accelerates

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Bitcoin Drops Below $68K but Long-Term Holder Buying Accelerates

Bitcoin (BTC) dropped toward $67,000 during the European trading session on Friday despite an increase in long-term buying. Exchange withdrawals also increased to 16-month highs, suggesting reduced “immediate selling pressure,” a new analysis said.

Key takeaways:

  • Bitcoin withdrawals from exchanges increases, reducing BTC available for sale.

  • Long-term holders accelerate accumulation, adding 155,450 BTC over the past 30 days.

  • Bitcoin analysts view $65,000–$66,000 as a potential support zone for a bounce.

Bitcoin supply tightens as long-term buying accelerates

CryptoQuant’s exchange flow data highlighted “renewed signs of supply tightening,” as large Bitcoin withdrawals continue across major exchanges. 

The chart below shows that investors withdrew nearly $1.6 billion of BTC from Bitfinex on March 16, as shown by the orange bar in the chart below.

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Related: Bitcoin floor ‘near $70K’ as TradFi returns: Will war, inflation break their belief?

Since then, the trend has expanded across other major exchanges, with a $678 million withdrawal from OKX on Sunday, a $728 million withdrawal from Kraken on Monday, and another $400 million in BTC leaving Binance on Wednesday.

“This pattern suggests that the latest wave of withdrawals is no longer isolated to one platform,” CryptoQuant analyst Amr Taha said in his latest QuickTake analysis. 

Bitcoin exchanges netflow, $. Source: CryptoQuant

The figures support the latest data showing Bitcoin whales and sharks have been accumulating over the last two months, a pattern that could trigger an eventual breakout from the range

Other data also reflects an accumulation phase, as long-term holders (LTHs), investors who have held Bitcoin for more than 155 days, ramped up buying.

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The LTH net position change has been positive since March 5, as about 155,450 BTC has been bought over the past 30 days.

In other words, holders are buying more on the dips, including the latest one below $68,000.

Bitcoin: LTH net position change. Source: Glassnode

When Bitcoin leaves exchanges while LTHs expand their positions, it “usually signals lower immediate sell pressure and stronger conviction from investors with a longer time horizon,” Amr Taha said.

If this trend continues, the market could be entering another phase where tightening sell-side liquidity and stronger LTH demand “create a more supportive backdrop for price,” the analyst added.

Bitcoin price to revisit $65,000 before bounce

As Cointelegraph reported, $70,000 remains the key for the Bitcoin bulls and that losing it could trigger the next leg down.

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The BTC/USD pair was trading below $67,000 at the time of writing, below the 50-day simple moving average (SMA) and the 200-week exponential moving average (EMA).

Bears will attempt to push the price toward the $65,000-$63,300 demand zone, with a deeper focus on the range low below $60,000, reached on Feb. 6.

BTC/USD daily chart. Source: Cointelegraph/TradingView

“It’s quite clear that there’s not enough strength for the markets to move higher after that rejection at $75K,” MN Capital founder Michael van de Poppe said in a recent X post.

An accompanying chart suggested that the price was seeking to print a higher low within the $65,000 to $66,000 range, failing which “we’ll start to see an acceleration downwards,” van de Poppe said, adding:

“I would be looking at longs in the lower-$60K range.”

BTC/USD daily chart. Source: Michael van de Poppe

The Glassnode liquidity heatmap highlighted “stronger” whale bid orders near $65,000, suggesting that the BTC price could retest this area before a bounce.

Bitcoin whale orders. Source: CoinGlass

As Cointelegraph reported, a break and close below the ascending trend line at $68,000 could result in Bitcoin price dropping toward $60,000, where it could consolidate next.