Bitwise collaborates with Lido on Ethereum validator consolidation in landmark CMv2 rollout
Bitwise's collaboration with Lido marks a significant milestone in Ethereum's staking infrastructure, paving the way for more efficient validator operations. This consolidation could reshape the landscape of Ethereum staking and its broader ecosystem.
Understanding Ethereum Validators
To grasp the significance of Bitwise's recent collaboration with Lido, it's crucial to understand what Ethereum validators are and their role in the network. Validators are like referees in a sports game; they ensure that all transactions are legitimate and that the network operates smoothly. In Ethereum, validators participate in a process called staking, where they lock up a certain amount of ETH to gain the right to validate transactions and earn rewards.
Until recently, each validator was limited to managing 32 ETH at a time. This limitation meant that large staking operations needed to set up thousands of individual validators, each generating their own messages to confirm transactions. This setup not only created a complex web of validators but also increased the overall workload on the Ethereum network.
The Shift to a New Validator System
In May 2025, Ethereum underwent a significant upgrade known as the Pectra hard fork, introducing a new type of validator through an Ethereum Improvement Proposal (EIP) called EIP-7251. This proposal allowed for a new validator type, referred to as 0x02, which can handle up to 2,048 ETH—64 times the previous limit. This change was designed to streamline the validation process and reduce the number of validators needed for large staking operations.
With this new system, validators can now manage larger amounts of ETH more efficiently, reducing the number of individual validators and the associated overhead. This transition is particularly important for platforms like Lido, which facilitates staking for many users and aims to make the process more efficient and less cumbersome.
Bitwise's Role in Validator Consolidation
Bitwise has taken a proactive role in this transition by executing the first validator consolidation on Lido Core under the new Curated Module v2 (CMv2). This consolidation is part of a broader migration plan that aims to restructure approximately 8.4 million staked ETH, valued at around $16.5 billion, from older validator types to the new, more efficient architecture. By consolidating legacy validators into the new 0x02 format, Bitwise is helping to reduce Lido's total validator count by about one-third.