Lido began reorganizing about US$ 16 billion in staked ETH after putting Curated Module v2 into operation. The change concentrates deposits in larger validators and changes the way ETH is managed on the Ethereum network.
The process transfers ETH from old validators, limited to 32 ETH, to new 0x02 validators. Each of them can maintain an effective balance of up to 2.048 ETH, a feature made available by Ethereum's Pectra upgrade.
The new structure also uses the balance-based accounting system adopted by Lido. As a result, the platform can group ETH into fewer validators without needing to withdraw the funds and carry out the staking process again.
In the first stage, Curated Module v2 is expected to distribute approximately 3.882 new validation keys. Together, they represent about 124.224 ETH that will be directed to the new configuration.
After this initial phase, approximately 7,82 million ETH managed by the module should go through the consolidation process. The operation will be carried out gradually, following the limits established by Ethereum's infrastructure.
The reduction in the number of validators may decrease Lido's operational load. In addition, the consolidation tends to reduce the amount of attestation messages processed by the Ethereum network, making staking management more concentrated.
The pace of the migration, however, depends on Ethereum's consolidation queue. Even under conditions considered ideal, the complete process may take at least 117 days.
Lido had already indicated that the migration would take place in different stages. The broader timeline may extend until the first quarter of 2027, depending on the network's capacity to process the consolidations.
The change gained approval on July 23, when Lido DAO authorized Curated Module v2 along with an upgrade to Community Staking Module v3. After that, the proposal went through Lido's Dual Governance review before implementation on the mainnet.
With the new structure, Lido seeks to manage large volumes of staked ETH using fewer validators, taking advantage of the expanded capacity introduced by the Pectra upgrade.