LidoDow has officially launched its Community Staking Module (CSM) on Ethereum Maint by October 25, 2024. This new feature allows Ethereum stakers to become solo valid with a minimum deposit of only 2.4 ETH, significantly lowering the barriers to entry to participate in the Ethereum network.

Community Stacking Module Overview

CSM is designed to simplify the staking process, enabling users to operate Ethereum legitimate cars without requiring extensive technical knowledge or the traditional 32 ETH deposit. Currently, the module is in its “early adoption” phase, which only allows selected community stickers to participate. A full permitting phase is expected to be launched soon.

Governance and approval process

CSM’s minnet release was approved by 109 LDO governance members, with 71 million LDO tokens voting in favor, while 86 members opposed the move. This decision indicates the commitment of the community to increase the decentralization of Ethereum.

Market Position of Lido

According to Defilama, Lido remains the largest decentralized application by total value, boasting more than $24 billion in smart contracts. CSM previously achieved a successful testing phase on Ethereum’s Holsky Tencent, which began on July 1, attracting more than 370 unique node operators, including 70 solo stakers, within the first ten days.

Addressing accessibility challenges

The Ethereum staking landscape has long been hampered by the high capital requirements and technical expertise required to operate a validator. CSM solves these problems by reducing the initial deposit requirement to 2.4 ETH, which is about $79,000 at current prices, and 1.3 ETH for subsequent assessments. Additionally, potential validators can use Ludo’s user-friendly interface, eliminating the need to set up their operations.

Effect on decentralization

By widening access to Ethereum staking, CSM plays an important role in increasing the decentralization of the network. Dmitry Gusakov, CSM Technical Lead and Lido Protocol Contributor, emphasized the importance of this initiative:

“The community staking module allows more people to contribute to Ethereum’s security and decentralization, creating a healthier, more resilient network. We are committed to breaking down barriers, so anyone, regardless of financial or technical background, can contribute to Ethereum’s security.”

Technical framework

CSM is built on the Stacking Router, a modular architectural upgrade that facilitates on-ramp development for new node operators, further promoting access and participation in the Ethereum network.

Final thought

LudoDow’s community staking module represents an important step towards democratizing Ethereum staking, making it more accessible to a wider range of participants. This move not only increases the decentralization of the Ethereum network, but also strengthens its security and resilience, paving the way for a more inclusive blockchain ecosystem.

FAQ: Ludo Dow’s Community Stacking Module

1. What is Community Stacking Module (CSM)?

The Community Staking Module (CSM) is a new feature launched by LudoDAO that allows Ethereum stakers to become solo validators with a minimum deposit of just 2.4 ETH. It aims to simplify the staking process and lower the barriers to entry to participate in the Ethereum network.

2. How does CSM enhance Ethereum decentralization?

By allowing more users to participate in staking with less capital required and simpler processes, CSM promotes greater decentralization within the Ethereum network. This helps distribute validator responsibilities across a wide range of participants, enhancing the security and resilience of the network.

3. What is the minimum deposit required to participate in CSM?

The minimum deposit required to become a solo validator through CSM is 2.4 ETH, which is around $79,000 at current prices. Subsequent validators can participate with a deposit of 1.3 ETH.

4. Is CSM currently open to all users?

No, CSM is currently in its “early adoption” phase, which only allows selected community stickers to participate. A full authorization phase is expected to launch soon, enabling wider access.

5. How was CSM approved?

CSM’s minnet release was approved by 109 LDO governance members, with 71 million LDO tokens voting in favor of the move. This reflects the community’s commitment to enhancing Ethereum’s decentralization.

6. What are the technical requirements to become a validator using CSM?

CSM is designed to be user-friendly, eliminating the need for extensive technical knowledge. Participants can use Lido’s interface to configure their legitimate cars without having to manage the technical aspects themselves.

7. How does CSM compare to traditional Ethereum staking?

Traditional Ethereum staking requires a minimum of 32 ETH and often involves significant technical expertise to operate a validator. CSM reduces the need for initial submission and simplifies the process, making it more accessible to a wider audience.

8. What is a stacking router?

A stacking router is a modular architectural upgrade that reduces CSM. It facilitates on-ramp development for new node operators, promoting access and participation in the Ethereum network.

9. How has CSM performed during its testing phase?

CSM underwent a successful testing phase on Ethereum’s Holsky testnet, which started on July 1st. During this phase, it attracted more than 370 unique node operators, including 70 solo stickers within the first ten days.

10. What is the position of Ludo Dow in Diffie space?

According to Defilama, LidoDow is currently the largest decentralized application by total value, with more than $24 billion in popular contracts. The introduction of CSM further solidifies its position in the Defy ecosystem.

11. Who is responsible for the development of CSM?

CSM was developed by the Lido Protocol partners, with Dmitry Gusakov serving as the initiative’s technical lead. The team is focused on breaking down the barriers to participation in Ethereum staking.

12. What are the long term goals of CSM?

CSM’s long-term goals include increasing the number of participants in Ethereum staking, increasing the decentralization of the network, and contributing to the overall security and resilience of the Ethereum ecosystem.