New Ethereum Proposal Seeks To Increase Validator Limit

Ethereum’s journey towards sclability and improved efficiency took a promising turn with the unveiling of a research proposal by an Ethereum research team, consisting of Mike Neuder, Francesco D’Amato, Aditya Asgaonkar, and Justin Drake.

This proposed solution centers around the increase of the MAX_EFFECTIVE_BALANCE (MaxEB), an Ethereum parameter currently capping the effective balance of Ethereum validators at 32 ETH.

A Case for Bloating: Validator Set Size

Under the current structure, the MaxEB has inadvertently caused the validator set size to bloat, compelling large-scale staking operations to run a vast number of validators. With over 600,000 active validators and an additional 90,000 in the activation queue, the Ethereum network experiences substantial strain. This proposal asserts that by increasing the MaxEB, it’s possible to unblock future consensus layer upgrades, improve the performance of the current consensus mechanism and peer-to-peer (p2p) layer, and enhance operational efficiency for validators of all scales.

Preserving Decentralization, Enhancing Efficiency

The research team emphasizes the need to maintain Ethereum’s core principle of decentralization while simultaneously boosting efficiency. As such, the proposed increase in MaxEB does not tamper with the 32 ETH minimum requirement to become a validator. The aim is for an opt-in approach, offering validators a choice to partake in the changes.

Unlocking Ethereum’s Roadmap: SSF and ePBS

The Ethereum roadmap includes significant consensus layer improvements, such as single-slot finality (SSF) and enshrined Proposer-Builder Separation (ePBS). Currently, these upgrades are hampered by the inflated size of the validator set. Increasing the MaxEB could potentially facilitate the realization of these roadmap goals, which are critical to Ethereum’s evolution and efficiency.

Relieving the Consensus Layer, Improving Rewards

Ethereum’s consensus layer experiences high stress levels due to the massive validator set size. A case in point is the multi-epoch delays in finalization the beacon chain faced in May 2023. By opting for an increased MaxEB, validators could choose to keep their stake wjithin the protocol for compounded rewards, thereby mitigating some of this strain.

In addition, the proposal outlines potential benefits for validators themselves. A higher MaxEB could democratize the compounding of stake, benefitting solo-stakers, who currently do not earn staking rewards above the existing MaxEB. For large-scale stakers tasked with managing thousands of validators, this change could significantly reduce operational overheads.

Assessing Potential Trade-offs

While counter-arguments against raising the MaxEB exist—primarily the appeal of the current simplicity and considerations around committees—the research team believes the proposed benefits significantly outweigh potential costs. The adoption of this proposal could mark a significant step towards a more sustainable and upgradeable Ethereum consensus layer, offering a feasible solution to Ethereum’s scalability challenges.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: https://cryptodaily.co.uk/2023/06/new-ethereum-proposal-seeks-to-increase-validator-limit