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I am excited for EIP 7251 Increase Max Effective Balance to be included in the next hard fork.
Not only will it allow for large staking providers to consolidate their stake into fewer validators (this will have two important effects)
1. Less P2P traffic needs to occur, improving block propagation speeds and decreasing bandwidth requirements across the network.
- The churn for withdrawals will happen faster. The protocol will cycle through the active validators quicker, so stakers will be able to receive their payouts more frequently.
BUT it will also have a marginal, but nonetheless important effect on the amount of outstanding liquid staking tokens.
The reason that I see, is that say you run a single validator, but you have 3 extra ETH. You don't want it just sitting there, so you perhaps trade it for stEth, or rEth. If you can consolidate, you will sell those and put them in your own validator. This will have the marginal effect of lowering the need for LST's. I don't think that this is a panacea, but I do think that it will make a small difference in lowering the % of market share that Lido controls. I would like to see Lido no higher than 22% of the market.
How would block proposals now work? I have read EIP-7251 but I may have missed if there was any explanation there.
Since there would only be 1 validator per 2048 ETH, whoever has more than 1 validator has more chance to propose or is it something like the chance is calculated by dividing by 32?
Incoming Koinly rant:
Compounding staking rewards is awesome, seriously awesome, but Koinly has no way of handling this currently. The beacon chain isn't currently supported. They didn't even support staking withdrawal state changes until late last year.
When you exit a validator, they have no idea, it just looks like you received a 32.XX staking reward which you then have to manually split between your original deposit and the rewards. If you want to reconcile with the cost basis from the original deposit for that validator (as you should), it takes extra work to differentiate all your deposits.
I didn't know I was slowly turning into a crypto-accountant until it was too late.
Is there a rough eta for the next launch?
End of Q4 according to Tim on Bankless. So maybe then or Q1 I would guess but that isn't far away.
Dope
Yep, I am of the opinion that you always add a quarter to whatever their timeline is. They say Q4 of 2024, so I say Q1 of 2025. I love the Ethereum team, and I think that they do brilliant work, but they are always a bit too optimistic when it comes to timing. I would love to be pleasantly surprised and they could get it out by November or December of this year.