- Ethereum developers propose increasing the maximum staking amount for validators, aiming to bring various benefits to the Ethereum network.
- The proposal suggests raising the maximum staking amount from 32 ETH to 2,048 ETH, which could contribute to reducing the total number of validators and improving network efficiency.
In a recent Ethereum core developer meeting held on June 15th, a new proposal to increase the maximum staking amount for Ethereum validators was discussed. The proposal suggests that by allowing individual nodes to stake more ETH, the total number of validators can be controlled, leading to several benefits for the Ethereum network as a whole.
Currently, the Ethereum network requires validators to hold a minimum of 32 ETH (approximately $8 million) for staking. However, the proposal, put forward by Michael Noyda, a researcher at the Ethereum Foundation, suggests keeping the minimum requirement at 32 ETH while raising the maximum staking amount to 2,048 ETH (approximately $500 million).
At present, there are around 700,000 active validator nodes, with an additional 90,000 validators in the queue, as reported by DUNE. The Ethereum network has a limited capacity for adding validators within a given period.
Noyda argues that while the existing 32 ETH requirement contributes to decentralization, it may hinder overall network efficiency. By increasing the staking limit, the proposal aims to achieve the following benefits:
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- Reducing the load on peer-to-peer (P2P) communication between nodes.
- Improving the efficiency of staked ETH withdrawal processes.
- Enhancing block processing speed and achieving “single-slot finality.”
- Streamlining block generation and achieving “Proposer-Builder Separation” (ePBS), which separates the roles of block proposers and block builders.
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Additionally, Noyda claims that the proposal could address infrastructure management challenges faced by large staking providers. Notably, major exchanges like Coinbase operate thousands of validators, leading to complex infrastructure management.
However, the proposal also comes with potential risks and considerations. Noyda highlights the risk of blockchain forks due to accidental double attestations in the same block and the possibility of stronger penalties (slashing) for nodes engaged in malicious activities. These risks need to be carefully evaluated before implementing the proposal.
Staking refers to the process of depositing a certain amount of cryptocurrency for a specified period to earn rewards. It is typically performed on cryptocurrencies that utilize Proof of Stake (PoS) consensus algorithms.
The proposal to increase the maximum staking amount and automate the compounding of validator rewards will continue to be discussed among prominent developers. Further deliberations on implementation details are expected to take place on social platforms such as the ETH Forum and Discord.
The Ethereum Improvement Proposal aims to address the challenges of network scalability and efficiency by modifying staking requirements. By raising the maximum staking amount, Ethereum seeks to strike a balance between decentralization and optimal network performance, fostering the growth of the ecosystem.
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