Ethereum validators may have to stake 64X more ETH, devs discuss

Proposal to Increase Minimum Staked Ether to 2048 ETH

Ethereum core developers intend to implement a 64x increase in the minimum amount of staked Ether (ETH) necessary to become a validator, from 32 ETH to 2048 ETH.

At a consensus meeting of Ethereum core developers on June 15th, a proposal was put forward by Ethereum Foundation researcher Michael Neuder. He highlighted that while the current limit of 32 ETH allows for increased decentralization of the Ethereum network by enabling more validators to join, it also leads to an expansion of the validator set.

Neuder asserted that this sizeable rise would be beneficial to the Ethereum network in the long run, making it more effective. In addition to the suggestion of raising the minimum staked ETH for validators, Neuder also proposed auto-compounding for validator rewards.

The auto-accumulation of rewards would give validators the opportunity to make more money from their staked ETH. At the moment, to receive any staking income, rewards that exceed the 32 ETH limit must be moved to another account. If the limit was raised, these rewards could be quickly compounded, providing validators with a practical means of increasing their earnings.

Neuder asserted that the present proposal would not only optimize the Ethereum network and provide validators with more financial gain, but it would also be advantageous for big node operators, such as exchanges, that are currently overseeing thousands of validators.

Response to Proposal from Crypto Community

The response to the proposal from the crypto community was mixed, with some users stressing that a major alteration in staked ETH would result in a decrease in validators and thus make the network more centralized. Others, however, dismissed the idea and argued that it would not be advantageous for the network.

The limit of 32 ETH has caused a considerable spike in the number of validator addresses since Ethereum moved to a proof-of-stake system. Currently, there are in excess of 700,000 validators, with roughly 90,000 still waiting to be activated in the line.

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