Ethereum

Here is a quick overview of EIPs that promote validator consolidation, before ACDC! 

The fast finality roadmap requires consolidation, to allow more stake to weigh in on consensus decisions with less overhead. We therefore wish to nudge stakers in this direction.

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EIP-8061 increases the exit and consolidation churn, so more stake can exit and consolidate each epoch. Reduced queues increase liquidity and help the network reconfigure stake after adverse events. We route exits through the consolidation queue when the exit queue is longer.

EIP-8062 charges a small fee for sweep withdrawals on 0x01 validators. It’s calibrated to roughly match the EL gas costs of the operations, at the average base fee over the last year. The fee is taken out as a percentage: 0.05%, for consistency, if the validator set size changes.

The fee is rather marginal, all things considered. We might suspect that $100k/year for an entity managing 5% of the stake is an insufficient incentive to consolidate. An alternative specification therefore has a higher fee. But before we get to that, we must review EIP-8068.

A higher deposit churn might also be beneficial. A concern is faster growth in active stake, but the equilibrium staking level is arguably best addressed by reducing the yield. Since a higher deposit churn is more controversial, the EIP is currently focused on exits/consolidations.