News Report Technology
October 25, 2024

Lido Protocol Introduces New Community Staking Module, Lowering Barriers

In Brief

Lido DAO approved the launch of the Community Staking Module on Ethereum, which enables anyone to operate Ethereum validators with less than 32 ETH.

Lido Protocol Introduces New Community Staking Module, Lowering Barriers

Decentralized autonomous organization (DAO) behind the liquid staking protocol Lido voted to approve the launch and activation of the Community Staking Module (CSM) on the Ethereum Mainnet. CSM is the first module to introduce permissionless access to the Lido Protocol, reducing entry barriers by allowing anyone to operate Ethereum validators with minimal technical skills and less than the standard 32 ETH. Initially, CSM access will be limited to Early Adoption participants, with plans for it to transition to full permissionless availability in the near future.

“The Community Staking Module allows more people to contribute to Ethereum’s security and decentralization, creating a healthier, more resilient network,” said Dmitry Gusakov, Lido Protocol Contributor and CSM Technical Lead, in a written statement. “We want to break down barriers, enabling anyone—regardless of financial circumstances or technical expertise—to help secure Ethereum. Beyond technology, we are also supporting the growing global solo staker community through the Community Lifeguards Initiative, ensuring everyone has the resources and knowledge needed to succeed,” he added.

The CSM addresses key obstacles in Ethereum’s solo staking landscape by enabling participation with lower ETH requirements. Initially, a bond of 2.4 ETH (or 1.5 ETH for eligible Early Adoption participants) is required for the first validator, with a reduced bond of 1.3 ETH for each additional validator. Early Adoption participants—identified based on community analysis of potential solo stakers within the Ethereum ecosystem—will have early access to CSM ahead of its transition to a fully permissionless model.

Designed for accessibility, CSM offers solo stakers a streamlined entry into Ethereum staking. Unlike other options requiring higher bonds, additional collateral, or complex entry mechanisms, CSM allows participants to use only ETH, presenting an appealing path for those interested in supporting Ethereum’s decentralization efforts.

CSM Launch To Drive Decentralization

The CSM closely aligns with the vision of Ethereum co-founder Vitalik Buterin, who advocates for the essential role of solo stakers in enhancing the network’s resilience. By enabling more independent stakers to engage, CSM aims to decrease the concentration of validation power among a few large, permissioned entities. This diversification of operators contributes to the overall security, resilience, and censorship resistance.

The CSM testnet, which launched on July 1st, is currently operating on the Ethereum Holesky testnet and remains accessible for participants. Over three months of testing have confirmed the module’s reliability and user-friendliness. During the testnet phase, more than 370 unique node operators have joined, including 70 solo stakers within the first 10 days. These encouraging results suggest that CSM has the potential to increase the number of node operators using the Lido Protocol.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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