Bitfinex Alpha #60 | Ethereum Validator Limits Will Increase?

#Ethereum's core developers are engaged in discussions regarding a proposal that suggests a substantial increase in the maximum #validatorbalance **from #32ETH per validator to 2,048 ETH**. At present, Ethereum validators face an effective balance cap, which restricts their #stake to a minimum and maximum of 32 ETH. To earn a yield on amounts exceeding this limit, large-scale staking operations are compelled to deploy multiple validators. This practice has resulted in a significant surge in the number of #validators, with approximately **600,000** active validators and an additional **90,000** awaiting activation in the queue. MichaelNeuder, an #EthereumFoundation researcher and a key advocate of the proposal, presented his case during a recent Ethereum core developer consensus meeting last June 15th. Neuder argued that while the current validator cap promotes decentralisation, it inadvertently leads to an inflationary increase in the validator set size. By raising the cap, the expansion of the active validator set could be slowed down, subsequently improving the network's efficiency in achieving finality within a single Ethereum slot. Read [Bitfinex Alpha Issue #60](https://blog.bitfinex.com/wp-content/uploads/2023/06/Bitfinex-Alpha-60.pdf) to find out how this proposal may influence Ethereum's network performance, operational efficiency, and rewards for participants, and subscribe to our [weekly newsletter](https://blog.bitfinex.com/bitfinexalpha/) not to miss important updates.