EIP-7251, also known as MaxEB, is an Ethereum improvement proposal aimed at addressing the issue of redundant network validators.
Posted April 11, 2024 at 7:00 AM ET.
Ethereum’s growth has led to a continuous increase in validators participating in the network’s consensus process. Ethereum researchers have expressed concerns about the potential for network instability due to the continued growth of the validator set.
We discuss EIP-7251 and its role in addressing these concerns.
What is EIP-7251 (MaxEB)?
EIP-7251 (MaxEB) is a proposed improvement to the Ethereum network that aims to address the “redundant validator” issue.
EIP-7251 proposes to increase the maximum amount validators can stake from the current 32 ETH to 2048 ETH while maintaining the minimum staking balance limit at 32 ETH.
The goal is to allow large node operators to consolidate validator sets, potentially reducing the number of validators and increasing network efficiency. Validators do not have to completely exit and re-enter the protocol to consolidate valid balances.
For solo stakers, EIP-7251 allows you to earn compound interest rewards and stake Ether in more flexible increments. For example, a large node operator with 2048 ETH can consolidate 64 validator sets into one, while a solo staker with a 45 ETH balance only needs to allocate resources to one validator set.
As of March 2024, the Ethereum network has over 950,000 validator sets. In theory, this means the network is truly decentralized. However, although the network recognizes each validator as a unique entity, parties can run multiple validators on the same device.
EIP-7251 proposes to lift the maximum effective balance limit to enable consolidation and accurately reflect the level of decentralization of the network.
How does EIP-7251 work?
EIP-7251 proposes to reduce the number of validators while maintaining high economic security on the Ethereum network.
EIP-7251 relies on four key features to make it work.
- Creating a minimum balance and increasing the maximum balance: EIP-7251 proposes setting the minimum activation balance to 32 ETH and increasing the maximum active balance from 32 ETH to 2048 ETH.
- Combining multiple validator sets: The increased limit allows large node operators to combine validators without cycling through termination and activation queues. This helps speed up the staking process while reducing costs through integration within the protocol.
- Add partial drawer of execution layer. Execution layer messages trigger partial withdrawals in addition to full exits. For example, a validator who has staked 200 ETH can remove 50 ETH without exiting. This increases flexibility in staking configurations and allows validators to control the moment and amount of withdrawals.
- Custom effective balance limit: EIP-7251 allows validators to customize the maximum amount to enable partial withdrawals.
Reasons for and against MaxEB
There are several compelling reasons to advocate increasing the maximum effective balance.
Addressing consensus layer challenges
Under the current restrictions, the network incurs high withdrawal loads when the maximum available balance is exceeded. Additionally, large validator sets strain resources and cause network delays.
Therefore, reducing the number of validators in particular can address this issue. The network continues to expand.
Allows for future upgrades
As stated in the roadmap, upgrades to the Ethereum network, such as single-slot finality and proposer-constructor separation, rely on a lower validator set. Integration helps lay the groundwork for implementing such upgrades.
competitive solo staking
The main beneficiaries of EIP-7251 appear to be large node operators, but individual stakers also have something to gain. An individual staker can stake flexible amounts of her ETH and enjoy compounding rewards.
Reducing overhead costs
For large node operators, the 32 ETH cap poses the logistical challenge of running thousands of validators on a single machine. EIP-7251 minimizes effort by reducing the number of validators. This also reduces operational costs and maximizes profits.
There are several reasons to oppose MaxEB.
Slash risk
a Proof of Stake (PoS) Network Things like Ethereum promote economic security through slush. Slashing involves the partial or complete destruction of a validator's staked assets if it is deemed responsible for actions that threaten the security of the network. MaxEB increases the maximum limit that validators can stake, increasing slash risk.
The Ethereum community is aware of this risk and has proposed a fix for the slash penalty. The idea is to introduce a non-linear thrashing mechanism that facilitates integration.
complicated
The current limit is 32 ETH per validator, so you can easily consider different ones. consensus side. Raising it to 2048 ETH could take focus away from other important areas. This can reduce the security level of your network.
decentralization
As of March 2024, there are over 950,000 validator sets on the Ethereum network. Consolidation under MaxEB will significantly reduce that number. As a result, there may be an imbalance in the committee's influence. This violates the principle of decentralization, as a malicious actor could potentially take control of the committee and carry out fraudulent activities. Attack power 51%.
Regulatory interference
Regulators may find grounds to claim that ETH is an interest-bearing security since validator rewards will be automatically compounded once EIP-7251 is implemented.
Currently, validators are considered service providers who are compensated for securing the network. With the implementation of EIP-7251, validators with higher balances will be rewarded more, giving regulators a basis to claim that being a validator is equivalent to a traditional bank savings account. may be provided.
conclusion
EIP-7251 proposes to significantly reduce the number of validators without making major changes to the Ethereum network.
There are important issues that the community needs to address to ensure that its implementation does not negatively impact the network. The community has identified challenges such as addressing concerns and has made suggestions to address them. However, other issues, such as regulatory concerns, have not yet been fully considered.
Overall, EIP-7251 points the way to an efficient Ethereum network, as long as the community addresses all concerns before implementation.
