Lido Core Unveils Major Ethereum Staking Upgrade
Key Takeaways
- •Curated Module v2 introduces Ethereum’s 0x02 withdrawal credentials and raises the effective stake per validator to as much as 2,048 ETH.
- •Lido said the upgrade is automated at the protocol level, so stETH holders do not need to migrate funds or adjust settings.
- •The company said the new structure could reduce Ethereum validator counts from 880,000 to 628,000, although the figures are speculative and migration has not started.
- •The update affects only Ethereum’s Consensus Layer, while the Execution Layer remains unchanged.
- •Lido said the upgrade adds stricter accountability measures for node operators through bonding and penalties.
Lido Core has announced an upgrade to its Ethereum staking framework aimed at improving validator efficiency and supporting decentralization.
The update will allow validators to operate with higher staking amounts while using fewer validator addresses across the network. According to the protocol, the change will be automated by Lido Core, and stETH holders will not need to take any action.
Lido Core posted on July 27, 2026:
Lido Core 2026 Upgrade
The biggest evolution of Lido Core brings improvements across the staking modules to keep the protocol aligned with Ethereum’s roadmap and ensure long-term protocol sustainability. No action is required from stakers – the upgrade is protocol-level. ↓ pic.twitter.com/VS5M59QiGh — Lido (@LidoFinance) July 27, 2026
Curated Module v2 Brings New Staking Structure
The upgrade includes the introduction of Curated Module v2, which adds Ethereum’s 0x02 withdrawal credentials. Lido said the change will allow validators to raise their effective staked ETH amount from 32 ETH to as much as 2,048 ETH.
Lido described Curated Module v2 as follows on X on July 27, 2026:
- Curated Module v2: Evolving the Largest Staking Module CMv2 introduces a framework for market-driven operator economics, new security mechanisms and streamlined operations to replace the legacy Curated Module with a more sustainable, autonomous and Ethereum-aligned… — Lido (@LidoFinance) July 27, 2026
By increasing the amount of ETH assigned to each validator, Lido said the update is expected to reduce validator complexity and improve staking infrastructure efficiency without changing how users stake through Lido. That distinction matters for stETH holders, since the upgrade is designed to happen at the protocol level rather than through a user-side migration or settings change.
Validator Count Could Decline
Lido said the new system could reduce the number of validators on the Ethereum network from 880,000 to 628,000, though it noted that migration has not yet started and that those figures are speculative.
The company said the lower number of validator accounts would reduce the amount of validator message processing handled by the consensus layer.
Lido also said the update affects only Ethereum’s Consensus Layer. The Execution Layer, which handles transaction processing and gas fees, will remain unchanged. As a result, Lido said the upgrade will not affect transaction speed or fees.
New Requirements for Node Operators
The upgrade also introduces stricter accountability measures for node operators, including bonding and penalties intended to encourage proper performance and improve network security.
Lido said additional factors, such as operator performance, fees and contributions to the Ethereum network, may carry more weight in the future. The company said it believes these measures will help attract stronger node operators to the protocol.
Lido said Curated Module v2 represents the next stage in the development of Lido Core.
The company also emphasized that stETH holders will not need to migrate funds or manually adjust staking positions. The upgrade will take place at the protocol level, allowing users to continue earning staking rewards on Ethereum without interruption.