GM from our friend ms at Ethereum. They are proposing this because there are too many validators with the current 32 ETH threshold, apparently.

“As it stands, Ethereum validators are subject to an effective balance cap set at both the minimum and maximum of 32 ETH. This forces large-scale staking operations to spin up multiple validators if they want to earn yield on any amount greater than this.

Unsurprisingly, this practice has led to a big increase in the number of validators. There are currently 600,000 active validators and an additional 90,000 awaiting activation in the queue.

Michael Neuder, an Ethereum Foundation researcher and key proponent of the proposed change, made the case for this increase, during the most recent Ethereum core developer consensus meeting held on Friday. He said while the current validator cap promotes decentralization, it inadvertently leads to an inflation of the validator set size.”

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