Lido Begins CMv2 Migration, Consolidating 8M ETH (~$16.5B) into Pectra's 0x02 Validators

Lido has launched what it describes as its most significant staking infrastructure shift since the Lido V2 era, starting the migration of more than 8 million ETH (about $16.5B) onto Ethereum's expanded 0x02 validator format introduced with the Pectra upgrade. As those larger validators absorb what were previously many 32 ETH units, Ethereum's total validator count is expected to fall by roughly 33%. The move is being executed through Lido's Curated Module v2 (CMv2), approved by the Lido DAO on July 23, 2026, following audits and testnet testing. Lido positions CMv2 as its biggest structural update since Lido V2 launched in 2023. Before Pectra, Ethereum validators were limited to 32 ETH, forcing large staking providers to operate extensive validator fleets. With higher-capacity validators now available, those smaller validator instances can be consolidated. Lido expects the number of attestation messages—validator signals broadcast each epoch to confirm chain state—to decline by about 29%, reducing consensus-layer message volume. The protocol notes this change is not expected to directly lower gas fees or speed up transactions for users. CMv2 also adds a new financial requirement for Lido's node operator set. For the first time, its 34 professional node operators must post locked ETH as collateral, replacing a model that previously relied largely on reputation. Lido said the transition will come with a temporary cost for stakers, estimating a roughly 0.28% annualized reduction in staking rewards during the migration period. Given Lido's dominant share of staked ETH on Ethereum, the validator-count reduction is framed as a network-wide event rather than a protocol-only change. CMv2 is rolling out alongside CSM v3, another element of Lido's broader Core Upgrade package approved by the DAO on July 23, 2026.