Lido targets one-third validator reduction

• Lido (CRYPTO:LDO) has launched an upgrade that could reduce Ethereum's validator count by about one-third.
• The upgrade aims to improve validator efficiency without changing Ethereum transaction fees or speeds.
• Lido said the new system also introduces stronger accountability for node operators.

Lido (CRYPTO:LDO) has launched Curated Module v2, an upgrade that could reduce Ethereum (CRYPTO:ETH) validator numbers by about one-third through validator consolidation.

The upgrade supports Ethereum's 0x02 validator format, allowing validators to increase their effective balance from 32 ETH to as much as 2,048 ETH.

Lido said the migration could reduce Ethereum's validator count from about 880,000 to roughly 628,000 while cutting validator messages across the network.

The upgrade also introduces bond and penalty mechanisms for curated node operators, with future stake allocation expected to consider factors including performance, fees and ecosystem contributions, according to Lido.

Lido said the protocol-level upgrade requires no action from stakers, and following the announcement LDO was up about 9% at around US$1.32.

Lido said the changes are designed to improve Ethereum's consensus layer by reducing validator overhead rather than lowering gas fees or increasing transaction speeds.

At the time of reporting, Lido price was $0.3663.