“The upgrade creates a foundation for improving staking efficiency and reduces network load,” representatives of Lido commented on the protocol’s transition to the new CMv2 validator architecture as part of Ethereum’s Pectra upgrade. Moreover, the consolidation of digital assets worth sixteen and five-tenths billion dollars will reduce the number of validators by nearly one-third without lowering the network’s security level.

As James Smith, a representative of the Ethereum Foundation, noted — “This can be tracked by the capacity growth and process optimization for validators, which significantly simplifies system operations.” However, Lido representatives also clarified that although the number of individual validator identities is decreasing, this does not mean a reduction in the volume of locked funds, but rather reflects a transition to a more efficient management model.