Ethereum developers are considering raising the maximum validator balance from 32 ETH to 2,048 ETH per validator. The proposal was discussed during the most recent Ethereum core developer consensus meeting.
Ethereum developers consider raising max validator limit from 32 to 2,048 ETH
The Ethereum core developers are contemplating a proposal to increase the maximum validator balance from the current 32 ETH to 2,048 ETH per validator. This proposal focuses on raising the maximum stake for validators while keeping the minimum stake at 32 ETH.
Currently, Ethereum validators face a balance cap that limits their effective stake to a minimum and maximum of 32 ETH. This means that large-scale staking operations need to create multiple validators to earn yield on amounts exceeding this limit.
As expected, this practice has resulted in a significant rise in the number of validators. Currently, there are 600,000 active validators, with an additional 90,000 waiting in the activation queue.
Michael Neuder, an Ethereum Foundation researcher and a key supporter of the proposed change, presented the case for this increase during the recent Ethereum core developer consensus meeting held on Friday. He stated that while the current validator cap promotes decentralization, it unintentionally leads to an inflationary growth of the validator set size.
Neuder explained that raising the cap could slow down the expansion of the active validator set, ultimately improving the network’s efficiency in achieving finality within a single Ethereum slot. Additionally, the proposed increased cap would enable auto-compounding of validator rewards.
Currently, rewards earned beyond the 32 ETH cap must be redirected elsewhere to generate staking yield. However, if the cap is lifted and raised, these rewards could be immediately compounded, providing validators with an effective way to earn more from their staked ETH.
Furthermore, the proposal aims to address operational concerns for larger node operators, including exchanges like Coinbase, who currently manage tens of thousands of validators due to the existing 32 ETH cap per validator.
Increasing the maximum effective validator balance would allow such operators to handle fewer validators with higher stakes, potentially reducing complexity.
However, Neuder cautioned about associated risks, such as potentially higher penalties for accidental double attestations or proposals, also known as “slashing.”
The proposal is currently being debated among the core developers, who have agreed to discuss the implementation details further on social platforms such as ETHMagicians and Discord.
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