- Lido has started migrating over 8 million ETH to larger 0x02 validators.
- The upgrade is expected to reduce Ethereum's validator count by about one-third.
- Node operators must now post ETH collateral to better protect stakers.
Lido has begun its largest protocol upgrade since Lido V2, migrating more than 8 million ETH, worth roughly $16 billion, onto Ethereum's newer 0x02 validators introduced through the Pectra upgrade.
The migration allows validators to secure up to 2,048 ETH instead of the previous 32 ETH limit, significantly reducing the number of validators required to secure the network. Lido estimates the move will increase the share of staked ETH using 0x02 validators from around 32% to 52%, while cutting Ethereum's total validator count by roughly one-third.
The upgrade also introduces Curated Module v2, requiring professional node operators to lock up their own ETH as collateral. This bond can be slashed if operators fail to perform correctly, providing additional protection for stakers.
Alongside the upgrade, Lido is also expanding its permissionless Community Staking Module, making it easier and more capital-efficient for solo and community validators to participate in securing Ethereum.
