Making SSV an ETH Accrual Token

 SSV Network, the leading distributed validator technology (DVT) provider on Ethereum, securing over 5.5M ETH, is set to undergo the biggest comprehensive upgrade in its history. The SSV DAO has unveiled a potential path for SSV Staking, a major upgrade that would fundamentally redesign how the network accounts for validator balances and collects fees. If approved, the proposal would introduce SSV Staking delegation and Effective Balance Oracles, integral to the network, and turn the SSV token into an ETH accrual token, allowing SSV stakers to receive ETH rewards accrued from network fees.

At the center of the proposal is a move away from SSV-denominated protocol fees toward a fully ETH-native accounting and reward model that reflects the reality of Ethereum’s validator economy. Validator rewards are earned in ETH, operator costs are priced in ETH, and post-Pectra validator balances can now scale up to 2,048 ETH per validator. SSV Staking is designed to align the protocol — and its token — with that reality. 

Introducing Effective Balance Oracles for post-Pectra accounting

In parallel, supporting SSV staking and Ethereum’s post-Pectra validator model requires effective balance–aware accounting. Effective Balance Accounting ensures that fees, runway calculations, and liquidation logic scale with the actual stake secured by validators, rather than relying on “per-validator” accounting that has changed with validator consolidation – allowing a single validator to have a balance of 2048 ETH. 

Implementing this model natively requires the protocol to reflect validator effective balances on-chain throughout their lifecycle. To bridge the gap between Ethereum’s consensus layer and on-chain accounting, the protocol introduces Effective Balance Oracles that track validator balances and update the protocol state. 

Operating this oracle layer securely and resiliently is a core protocol function. Under SSV Staking, SSV holders would stake and delegate their tokens to support the selection and operation of oracle participants, aligning economic incentives with protocol security.

From Governance token to ETH accrual asset

Under the proposal, SSV holders would be able to stake their tokens in a new staking contract and receive cSSV, a liquid ERC-20 token minted 1:1 to represent a staked position. While holding cSSV, participants would accrue a pro-rata share of ETH-denominated network fees, distributed through the protocol in proportion to staking participation.

Elad Gafni, SSV Foundation, said:

“cSSV is designed to represent more than a staked position; it represents participation.” Adding that: “SSV Staking is a mechanism for SSV holders to help operate and secure a core protocol function through delegation. This is a fundamental shift in how value flows through the network.”

Crucially, holding cSSV preserves full governance and voting rights, while enabling composability across DeFi as a liquid representation of staked SSV.

A new relationship between Ethereum infrastructure and SSV token holders

SSV Staking goes beyond introducing yield. It is a full redesign of the network’s economic engine, connecting validator balances, ETH-denominated fees, oracle-backed accounting, and token incentives into a single system.

If approved by the DAO, SSV Staking would mark a shift from SSV as a governance and operator payment token toward an ETH accrual token, tightly coupled to the usage of one of Ethereum’s largest staking infrastructure providers.

About SSV Network

SSV Network provides a distributed infrastructure designed to improve the fault tolerance, decentralization, and security of Ethereum validators through Distributed Validator Technology (DVT). SSV Network is the leading provider on Ethereum, securing over 5.5M ETH, worth an estimated ~$16 billion, across nearly 2,000 globally distributed node operators. 

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