Lido begins migrating $16.5B in staked ETH to a new architecture, reducing validator count by one-third while introducing bonded requirements for node operators

All 34 of Lido's existing curated node operators are expected to transition to the new architecture, with none planning to leave over the bond requirement, the protocol confirmed. Node operators will, for the first time, back staked ETH with their own capital, complementing the reputation-based model with economic accountability, according to Lido Labs Foundation's Will Shannon. The migration will use a separate consensus-layer consolidation queue rather than Ethereum's deposit and activation queue. Lido estimates annual staking rewards across the protocol will fall by about 0.28%. Validators keep earning until exit, with missed rewards capped before balances reach new validators.

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