Lido upgrade aims to slash Ethereum’s validator count by one-third

Lido launched Curated Module v2, an upgrade that could trim Ethereum’s validator number by one-third by consolidating validators and introducing caller relation rules.

Lido, a liquid staking protocol that lets users gain Ethereum staking rewards done its stETH token, has launched an upgrade to its staking infrastructure that aims to amended validator ratio and decentralization.

The upgrade introduces Curated Module v2, which adds enactment for Ethereum’s 0x02 withdrawal credentials. The alteration allows validators to summation their effectual equilibrium from 32 ETH to up to 2,048 ETH, according to a Lido update connected Monday.

Lido said the migration could trim Ethereum’s validator number from astir 880,000 to astir 628,000, a alteration of astir one-third. The migration has not started yet, and the figures are based connected Lido’s projections.

The alteration is expected to impact Ethereum’s statement furniture by reducing the fig of validators and validator messages required to support the network, according to Lido. It is not designed to alteration execution-layer activity, which determines transaction fees and state costs.

The update besides introduces caller accountability measures for Lido’s node operators, including bonding and punishment mechanisms. Lido said aboriginal involvement organisation could spot much value connected factors specified arsenic relation performance, fees and contributions to Ethereum’s ecosystem.

“Curated Module v2 is the adjacent large measurement successful that evolution,” Lido said, adding that the upgrade introduces caller relation incentives, bond-based information mechanisms and governance improvements. Lido said nary enactment is required from stakers due to the fact that the upgrade volition beryllium handled astatine the protocol level.

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