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Ethereum draft EIP-8148 would change when compounding rewards get swept
The proposal would let compounding (0x02) validators set a custom balance threshold between 32 ETH and the current 2,048 ETH default, while existing exit rules would still govern principal withdrawals.
Ethereum is considering a change to its validator reward-sweep mechanics that would let compounding validators choose how much ETH can remain on a validator before excess rewards are sent into the protocol's automatic withdrawal process, according to CryptoSlate.
An Aug. 20 edit to draft EIP-8148 lowered the proposal's minimum custom threshold from 33 ETH to 32 ETH and added a way for a new 0x02 validator to encode an initial threshold at creation. If enabled, compounding validators could select a level between 32 ETH and the current 2,048 ETH default, affecting when reward sweeps occur.
Under the draft, 0x02 validators could keep rewards compounding until the threshold is exceeded, while Ethereum would continue to use its existing exit and withdrawal-credential rules for principal withdrawals. Legacy 0x01 credentials would still have a 32 ETH effective-balance cap, and any balance above 32 ETH would be periodically swept, stopping compounding rewards for those validators.
CryptoSlate also noted that while 0x02 compounding validators are a minority by count, they represent a large share of stake, citing a July 28 snapshot showing 16,926 active 0x02 validators, or 1.91% of active validators, holding 13.36 million ETH, or 32.43% of active stake. The article said this means the 2,048 ETH default understates how much ETH is exposed to the current sweep timing.
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