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

Latest NewsPublishedJul 28, 2026Lido launched Curated Module v2, an upgrade that could reduce Ethereum’s validator count by one-third by consolidating validators and introducing new operator rules.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.The upgrade introduces Curated Module v2, which adds support for Ethereum’s 0x02 withdrawal credentials. The change allows validators to increase their effective balance from 32 ETH to up to 2,048 ETH, according to a Lido update on Monday.Lido said the migration could reduce Ethereum’s validator count from about 880,000 to roughly 628,000, a decrease of about one-third. The migration has not started yet, and the figures are based on Lido’s projections.The change is expected to affect Ethereum’s 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.The update also introduces new accountability measu...