Lido upgrade aims to slash Ethereum’s validator count by one-third
Lido has launched Curated Module v2, an upgrade to its liquid staking infrastructure for stETH that aims to improve validator efficiency and decentralization. The update adds support for Ethereum’s 0x02 withdrawal credentials, allowing validators to raise their effective balance from 32 ETH to as much as 2,048 ETH. Lido projects this could cut Ethereum’s validator count from about 880,000 to 628,000, though the migration has not started and the figures are only estimates. The change is expected to reduce consensus-layer load by lowering validator count and message traffic, but it will not affect execution-layer activity, gas fees, or transaction costs. The upgrade also introduces new operator accountability tools, including bonding and penalties, and may shift future stake allocation toward performance, fees, and ecosystem contributions. Stakers do not need to take any action.
