Liquid-staking protocol Lido deployed its largest upgrade since 2023’s V2, starting the consolidation of over 8 million staked ether (stETH), worth roughly $16.5 billion, onto Ethereum’s post-Pectra validator design introduced a year ago.
Lido, the biggest Ethereum staking pool, said in an email news statement on Monday that the action will reduce Ethereum’s overall validator count by an estimated one-third, greatly reducing the strain on the network’s consensus layer.
The relocation will enhance network performance in the background, but it won’t immediately lower gas prices or expedite transactions for common customers. According to Lido, the consolidation alone should reduce the quantity of attestation messages sent throughout the Ethereum network by about 29% every epoch, which is a set amount of time or blocks that are used to arrange and synchronize a blockchain network.
Lido’s professional node operators are upgraded to Curated Module v2 (CMv2). Operators in the curated module will have to back their performance with locked ETH bonds for the first time in Lido’s five-year history. This will add financial penalties to a system that previously depended on reputation and track record.
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