Some core Ethereum developers plan to multiply the minimum amount of Ether by 64 (ETH) blocked that would be needed to become a validator, passing 32 ETH to 2048 ETH.
The proposal was made during a meeting Ethereum Core Developer Consensus Meeting held on June 15 by Ethereum Foundation Researcher; Michael Neuder. The researcher noted that while the current limit of 32 ETH allows more validators to join the Ethereum network, making it more decentralized, it also leads to inflation of the size of the validator pool.
Neuder added that such a large increase would ultimately help make the Ethereum network more efficient over time. In addition to the proposal to increase the required minimum of ETH locked to be a validator, Neuder also advocated for self-compensation of validator rewards.
Reward self-compensation would allow validators to earn more money from their locked ETH. Currently, in order to produce any staking income, rewards received above the 32 ETH cap must be transferred to another account. These benefits could be quickly compounded if the cap were raised, giving validators a convenient way to increase their profits.
Neuder claimed that the current proposal would not only make the Ethereum network more efficient and allow validators to earn more money, but would also help large node operators, like the exchanges that manage thousands of validators today.
The 32 ETH limit has caused a significant increase in validator addresses following the transition from Ethereum to a network proof-of-stake. Currently, there are more than 700,000 validators and about 90,000 more in queue waiting for activation.
The proposal received mixed reactions from the crypto community, with several users pointing out that such a significant change in locked ETH would lead to fewer validators and thus make the network more centralized. Other users dismissed the idea, stating that it would not be beneficial to the network.
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