Reducing the operational overhead of managing many validators (benefits large-scale stakers)
Not entirely clear/convinced.
From the perspective of a firm that handles at-scale stake:
-
We keep each “environment” to 1,000 keys, 32,000 ETH, for blast radius reasons. How many validator keys that is does not impact the operational overhead even a little bit. I am happy to unpack that further if warranted, if there are questions as to the exact nature of operational overhead.
-
If I have validators with 2,048 ETH, how does that impact the slashing penalty in case of a massive f-up? I am asking - is there a disincentive for large stakers to consolidate stake into fewer validators?
-
If I have validators with 2,048 ETH, does this reduce the flexibility of LST protocols to assign stake? For example, “the large LST” currently is tooled to create exit requests 32 ETH at a time, taking from older stake and NOs with more stake first. 2,048 ETH makes it harder for them to be granular - but at the same time so far there have been 0 such requests generated, so maybe 2,048 is perfectly fine because it wouldn’t be a nickel-and-dime situation anyway. Maybe someone at that LST can chime in.
Followup thought: Maybe the incentive for large-scale staking outfits is a voluntary “we pledge to run very large validators (VLVs) so you don’t do a rotating validator set”