Proposal to increase Ethereum validator limit from 32 Ether to 2,048 Ether.
There has been an increase in waiting times and interest in setting up Ethereum validator nodes, causing developers to consider significantly increasing the current limits. They have proposed raising it from 32 ether (ETH) to 2,048 ether, which is a 6,300% increase. This has caused larger entities such as Lido or staking services offered by crypto exchanges to create multiple validator nodes to provide staking yield services to users. The current limit has led to a rapid expansion of the network’s validator set, but with a large increase in the number of validators running the network.
The proposal was initially suggested by Ethereum developers Mike Neuder, Francesco D’Amato, Aditya Asgaonkar, and Justin Drake in early June. The proposal is still being debated and not actively being worked on as of Monday.
A validator is an entity in a proof-of-stake blockchain, such as Ethereum, that processes transactions and helps to maintain the overall security of such networks.
Current data shows that the waiting time for a user to run a validator node on Ethereum is 44 days, up from nearly a month in May. Exiting the network is possible within a few minutes, and as of Monday, no entity is in the “exit queue.”
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The strong demand to enter the network and earn a nearly 5% annual yield is likely due to large ether holders who do not want to cash out and instead want to earn passive income on their holdings.
This article was edited by Parikshit Mishra.