Lido Ends 72 Regular Clusters, Shifts to CSM Model

Lido has ended the operation of its 72 regular clusters that applied decentralized validator technology (DVT) through the Simple DVT Module for Ethereum staking infrastructure. The move marks a shift from the previous cluster model to one centered around the Community Staking Module (CSM). Lido's governance forum announced on September 18 that the wind-down process of the regular clusters was completed.

The termination proposal was included in the governance forum notice, with support fund disbursement status published on the Lido operator portal. Eligible node operators received a one-time conversion support fund of 0.175 stETH per person, paid to 240 operators, while four operators who confirmed their reward addresses remain for subsequent payments.

This decision does not eliminate Simple DVT entirely. Ten clusters—five based on Obol and five on SSV Network—will continue operating, each managing 500 validators. The Simple DVT structure allows multiple node operators to share validator key management and infrastructure responsibilities instead of a single operator handling both.

Lido tested this approach to broaden validator operation participation and explore opportunities for home stakers and community operators. The Lido operator portal explains that the DVT model distributes validator operations across multiple operators' infrastructure, designed so that if one operator faces issues, others can continue managing validators.

However, operational costs and profitability were challenges. Lido's governance proposal noted regular clusters had a DAO fee of 2%, lower than other modules' average of over 6%. During operation, there were 23 instances of operator set changes, with 11 out of the original 72 clusters requiring additional replacements. The proposal also cited increased management burden due to frequent cluster reconfigurations when operators left.

Lido DAO approved the regular cluster termination in a June vote with 57.4 million LDO in favor and zero against. The originally planned three-year operational period was moved up from around May 2027 to July 1, 2026.

For follow-up participation, Lido introduced Identified DVT Cluster (IDVTC) under CSM. Former operators can transition to individual operation or join a group of operators managing validators together via CSM. Some former regular cluster operators requested more opportunities to leverage existing equipment and experience for future participation.

Meanwhile, some governance forum representatives evaluated that while regular clusters validated DVT's feasibility, they were nearing break-even from an operator perspective. Lido contributors stated no separate long-term Simple DVT participation framework is planned, though future operator selection may review the existing participant pool.

This adjustment aligns with Lido's broader effort to streamline Ethereum validator operations. Following previous discussions on restructuring validator operations and staking infrastructure changes, this marks the conclusion of an experimental phase for regular clusters. While Super Clusters and CSM's IDVTC remain as DVT participation paths, whether future modules will reduce cost burdens compared to the previous structure remains to be seen through further operation.