Lido, a liquid staking protocol that lets users earn Ethereum staking rewards through its stETH token, has launched an upgrade to its staking infrastructure that aims to improve validator efficiency and decentralization.<\/p>\n
The upgrade introduces Curated Module v2, which adds support for Ethereum\u2019s 0x02 withdrawal credentials. The change allows validators to increase their effective balance from 32 ETH to as many as 2,048 ETH, according<\/a> to a Lido update on Monday.<\/p>\n Lido said the migration could reduce Ethereum\u2019s validator count to about 628,000 from 880,000, a decrease of about one-third. The migration has not started yet, and the figures are based on Lido\u2019s projections.<\/p>\n The change is expected to trim Ethereum\u2019s consensus layer by reducing the number of validators and validator messages required to maintain the network, according to Lido. It is not designed to change execution-layer activity, which determines transaction fees and gas costs.<\/p>\n The update also introduces new accountability measures for Lido\u2019s node operators, including bonding and penalty mechanisms. Lido said future stake distribution could place more weight on factors including operator performance, fees and contributions to Ethereum\u2019s ecosystem.<\/p>\n \u201cCurated Module v2 is the next major step in that evolution,\u201d Lido said, adding that the upgrade introduces new operator incentives, bond-based security mechanisms and governance improvements. Lido said no action is required from stakers because the upgrade will be handled at the protocol level.<\/p>\n Related: <\/strong><\/em>Ethereum nears market bottom against Bitcoin, though key signals remain unconfirmed: CryptoQuant<\/strong><\/em><\/a><\/p>\n