The liquid staking protocol is consolidating 8 million ETH while mandating its professional node operators to secure bonds for the first time.
By Olivier Acuna|Edited by Sheldon Reback Jul 27, 2026, 2:00 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Lido’s upgrade consolidates over 8 million staked ether onto a more efficient backend architecture to reduce the burden on the Ethereum network. (Lido/Media)SummaryShow- Lido has kicked off its most significant upgrade since 2023, consolidating over 8 million staked ether on Ethereum’s new post-Pectra validator system.
- This initiative is projected to decrease Ethereum’s validator count by approximately one-third and lessen attestation messages by about 29% per epoch, thereby alleviating pressure on the consensus layer without impacting gas fees or transaction speeds.
- Node operators within Lido’s curated module will transition to Curated Module v2, where all 34 current operators will be required to post locked ETH bonds for the first time, enhancing economic accountability.
The liquid staking platform Lido has initiated its largest upgrade since the V2 launch in 2023, beginning the consolidation of over 8 million staked ether (stETH), valued at around $16.5 billion, into Ethereum’s post-Pectra validator design introduced last year.
This migration aims to reduce the total number of validators on Ethereum by approximately one-third, significantly easing the burden on the network’s consensus layer, as announced by Lido, the largest staking pool on Ethereum, in a press release on Monday.
While this transition will not directly lower gas fees or accelerate transaction speeds for users, it should enhance overall network performance. Lido predicts that the consolidation will reduce attestation messages throughout the Ethereum network by roughly 29% per epoch, which refers to a defined time frame or a specific number of blocks used for synchronizing the blockchain.
The upgrade will shift Lido’s professional node operators to Curated Module v2 (CMv2). For the first time in Lido's five-year existence, operators in this curated module will need to secure their performance with locked ETH bonds, introducing financial penalties to a system that previously relied solely on reputation.
Isidoros Passadis, chief of staking at Lido Labs Foundation, stated, "This is the most significant change to Lido Core staking since Lido V2." He explained that the node operators managing the majority of ETH staked through Lido will be consolidating onto a smaller number of validators, and for the first time, they will be backing their stake with their own capital, resulting in a more streamlined and secure validator set for Lido Core.
Concerns were raised among ecosystem builders about whether the bond requirement would deter established node operators. However, Lido confirmed that all 34 of its current curated operators are expected to adopt CMv2, with none planning to exit due to the bond requirement.
Will Shannon, head of node operator mechanisms at Lido Labs Foundation, remarked, "Instead of replacing the existing reputation-based model, the bonds enhance it with genuine economic accountability."
Furthermore, he noted that the migration will utilize a distinct consensus-layer consolidation queue, separate from Ethereum’s deposit and activation queue. Lido estimates that this transition will slightly decrease annual staking rewards across the protocol by about 0.28%. Validators will continue to receive rewards until they exit, with any missed rewards limited to the timeframe before their balances are transferred to the new validators.
Ethereum NewsStakingLatest Crypto News- 1Thailand's SEC alleges Bitkub concealed cyberattack that led to $50 million hack29 minutes ago
- 2Nvidia forms 37-member AI security alliance without OpenAI, Anthropic or Google35 minutes ago
- 3Securitize builds Wall Street credentials with SEC adviser license as tokenization expands1 hour ago
- 4Crypto is rewriting how Wall Street traders spend their weekends1 hour ago
- 5Bitmine buys more ether as Tom Lee says rising ETH/BTC ratio points to stronger crypto prices1 hour ago
- 6Circle buys nearly 1,000 blockchain patents from IBM1 hour ago
- 7Michael Saylor's strategy boosted cash reserve to $3.75 billion, repurchased $25 million of STRC1 hour ago
- 8Bitcoin options traders are dropping their hedges going into the Fed meeting2 hours ago
- 9Ballooning U.S. debt sends investors to bitcoin, gold to shelter from dollar devaluation2 hours ago
- 10Bitcoin ETFs post third straight weekly inflows despite $465 million in late-week losses2 hours ago
Crypto Flows, Share and the Selective Rotation
Crypto Flows, Share and the Selective Rotation
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
By CoinDesk ResearchJul 22, 2026Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
View Full ReportMore From Tech