Lido, the largest liquid staking protocol on Ethereum, is restructuring its validator operations. The move will cut the number of validators it runs by roughly one-third and, for the first time, require its professional node operators to post bonds. The changes affect about $16.5 billion worth of staked ether.
Why the validator count is dropping
Lido currently operates a large number of validators — each one requires 32 ether to activate. By consolidating those deposits into fewer validators, the protocol aims to improve efficiency and reduce overhead. The reduction of roughly a third means tens of thousands of validators will be deactivated, with the staked ether reallocated to remaining validators.
New bond requirement for node operators
For the first time, Lido is requiring its professional node operators to post bonds. The bonds are meant to align incentives and provide a financial backstop in case of misbehavior or slashing events. Previously, node operators did not have to put up their own capital. The exact bond amount has not been disclosed, but the requirement marks a shift in how Lido manages risk.
What this means for Lido stakers
Stakers who have deposited ether into Lido will not need to take any action. The protocol handles the validator changes automatically. However, the bond requirement could affect the economics of running a node, potentially leading to changes in the fees node operators charge. Lido says the move is designed to make the network more secure and sustainable over the long term.
The transition is expected to take place over several weeks. Lido has not announced a specific completion date.
