Lido DAO Greenlights Ethereum Community Staking Module Activation

After a successful vote, Lido DAO has approved the activation of the Community Staking Module (CSM) on the Ethereum Mainnet.

As the inaugural feature of the Lido Protocol designed for open access, CSM seeks to empower a wider variety of participants to operate Ethereum validators, even if they possess minimal technical skills and hold less than 32 ETH.

Enhancing Decentralization

According to the official announcement shared with CryptoPotato, CSM will initially be available to Early Adoption participants, with intentions to allow full permissionless access shortly thereafter.

The CSM targets multiple aspects of the Ethereum solo staking environment by permitting users to engage with smaller ETH contributions. The initial bond requirement is established at 2.4 ETH (or 1.5 ETH for those designated for Early Adoption) for the first validator, decreasing to 1.3 ETH for each subsequent validator.

Participants in the Early Adoption phase, chosen through a community-led evaluation of prospective solo stakers, can commence utilizing CSM for validator operation prior to its general availability.

Dmitry Gusakov, a contributor to the Lido Protocol and the CSM Technical Lead, stated that the new CSM model will expand opportunities for individuals to help secure Ethereum’s network and decentralization, fostering a healthier and more resilient ecosystem.

“Our goal is to dismantle obstacles, allowing anyone—regardless of their financial situation or technical know-how—to contribute to securing Ethereum. In addition to technology, we’re also nurturing the growing global solo staker community through the Community Lifeguards Initiative, ensuring everyone possesses the resources and knowledge required for success.”

CSM Testnet Achievements

Lido indicates that the CSM is in line with Ethereum co-founder Vitalik Buterin’s vision of enabling solo stakers to enhance the network’s resilience. By facilitating the inclusion of more independent stakers, CSM aims to reduce the concentration of validation control among a few large entities. This increased diversity among operators is anticipated to improve “Ethereum’s security, resilience, and censorship resistance.”

The CSM testnet has been operational on Ethereum’s Holesky testnet since July 1st, 2024, and remains accessible. Over this three-month period, approximately 370 node operators have participated, with 70 solo stakers joining within the first 10 days alone.