Ethereum Foundation researcher Michael Neuder has proposed that Ethereum’s validator balance cap be increased from the current 32 ETH. Core developers are considering the proposal, which would see the limit raised to 2,048 ETH – 64 times higher than the current limit.

Neuder argues that the higher limit provides more efficiency to the network by reducing the size of the validator set. It would also enable large validators, such as exchanges and institutions, to manage their operations more easily. Currently, there are over 700,000 validators on the Ethereum network, with a further 90,000 looking to join.

In addition to the increase in the limit, Neuder suggests that staking rewards should be auto-compounded. This would mean that validators would be able to earn higher staking income without having to move ETH above the cap to another account.

The proposal was discussed by core Ethereum developers, and it was agreed that further talks should take place. It is important to note that the minimum stake of 32 ETH would remain in place.