Lido’s Curated Module v2 aims to reduce Ethereum’s validator count by consolidating balances and improving efficiency.
Lido has launched an upgrade to its staking infrastructure that could reduce Ethereum’s validator count by approximately 252,000, or one-third, according to projections. The upgrade, Curated Module v2, allows validators to increase their effective balance from 32 ETH to up to 2,048 ETH by supporting Ethereum’s 0x02 withdrawal credentials.
Ethereum currently has about 880,000 validators, a number Lido expects to drop to roughly 628,000 after the migration. The change is designed to reduce validator messages and improve network efficiency without affecting transaction fees or gas costs.
The upgrade also introduces new accountability measures for node operators, including bonding and penalty mechanisms. Future stake distribution may prioritize operator performance and ecosystem contributions.