Ethereum’s ecosystem is advancing on multiple fronts, with key developments in both its staking infrastructure and network upgrades. The blockchain’s upcoming Pectra upgrade has moved closer to mainnet activation following a successful Sepolia testnet deployment, marking the final testing phase before its anticipated launch in April. At the same time, Clusterform, a subsidiary of SSV Labs, has proposed a permissionless staking module for Lido, leveraging Distributed Validator Technology (DVT) to expand node operator participation and enhance decentralization.
Ethereum’s Pectra Upgrade Moves Forward with Sepolia Testnet Activation
Ethereum's highly anticipated Pectra upgrade has reached a crucial milestone with its activation on the Sepolia testnet today at approximately 2:30 AM ET. This marks the final major test phase before the upgrade is deployed on Ethereum’s mainnet, which is tentatively scheduled for early April.
This upgrade is Ethereum’s next significant step toward scalability and efficiency, following the Dencun hard fork in March 2024, which successfully reduced Layer 2 transaction fees. Pectra introduces a range of enhancements aimed at improving network performance, security, and the overall user experience.
Sepolia, one of Ethereum’s key test networks, serves as a proving ground for upgrades before they are deployed on the mainnet. Developers simulate real-world network conditions to test how the upgrade will function under various scenarios. This rollout follows an earlier activation on the Holesky testnet on Feb. 24.
However, the Holesky activation encountered issues when incorrect deposit contract addresses in execution clients led to chain splits and delayed finality. Although this caused temporary disruptions, Ethereum’s core developers quickly addressed the issue and stabilized the network. Despite these early roadblocks, the Sepolia activation proceeded as scheduled today, marking a crucial step forward for the upgrade.
With Sepolia now running Pectra successfully, the Ethereum community is looking ahead to the All Core Developers (ACD) call on Thursday, where developers are expected to finalize the mainnet activation date.
Pectra derives its name from a combination of Prague (execution layer upgrades) and Electra (consensus layer updates). The upgrade introduces multiple Ethereum Improvement Proposals (EIPs) designed to enhance network scalability, security, and usability.
Key Features of the Pectra Upgrade:
EIP-7702 - Account Abstraction Enhancements
This proposal significantly improves crypto wallet usability and the user experience by making account abstraction more efficient.
It allows externally owned accounts (EOAs) to temporarily function as smart contract wallets, enabling more flexible and programmable interactions.
EIP-7251 - Increasing Validator Stake Limits
The maximum validator stake will be raised from 32 ETH to 2,048 ETH, reducing the number of validators needed to secure the network.
This change is expected to optimize staking operations while maintaining Ethereum’s decentralization.
EIP-7691 - Enhancing Rollup Scalability
The maximum blob count is being increased to advance Ethereum’s rollup scalability.
This change is designed to improve Layer 2 performance, further reducing transaction costs and increasing throughput.
Why Pectra Matters for Ethereum’s Future
Ethereum has been aggressively evolving to maintain its dominance as the leading smart contract platform. With competitors such as Solana, Avalanche, and BNB Chain innovating rapidly, Ethereum must continue optimizing its network to remain competitive.
The Dencun upgrade earlier this year focused on lowering Layer 2 fees, making Ethereum more accessible to everyday users. Pectra builds on this progress by improving validator operations and enhancing scalability through rollups, a crucial element of Ethereum’s long-term roadmap.
Additionally, the EIP-7702 proposal is a major step toward achieving full account abstraction, which could revolutionize how users interact with the Ethereum network by making crypto wallets more user-friendly and secure.
With Sepolia successfully activated, the Ethereum development team is now preparing for the final mainnet deployment. A final date for Pectra’s mainnet activation will likely be confirmed during this Thursday’s ACD call.
If everything goes according to plan, Ethereum’s mainnet will undergo the Pectra upgrade in early April. This will be another major milestone in Ethereum’s long-term transition toward greater scalability and efficiency.
The Ethereum community is watching closely, as Pectra could set the stage for even more transformative upgrades in the coming years, reinforcing Ethereum’s role as the backbone of the decentralized economy.
Clusterform Proposes Permissionless Staking Module for Lido Using SSV Network’s DVT
In related news, Clusterform, an independent subsidiary of SSV Labs, has introduced a groundbreaking permissionless staking module for Lido, aiming to further decentralize and expand node operator participation in Ethereum staking. The proposal, if approved, would mark a significant step in scaling Lido’s staking infrastructure, leveraging SSV Network’s Distributed Validator Technology (DVT) to enhance accessibility, security, and resilience.
This would be the first third-party module integrated into Lido’s Staking Router, a key feature of Lido v3 that enables modular staking architecture. By increasing the number of node operators and mitigating staking risks, the proposed module could bolster Ethereum’s decentralization and long-term security.
Lido is currently the largest liquid staking protocol, allowing users to stake Ethereum (ETH) without needing to maintain validator nodes themselves. However, its reliance on a curated set of node operators has long been a point of discussion within the Ethereum community. The introduction of a permissionless staking module would enable a broader and more decentralized set of node operators to participate, reinforcing Ethereum’s security and resilience.
The proposed module will utilize SSV Network’s Distributed Validator Technology (DVT) to integrate independent node operators (NOs) into Lido’s infrastructure. DVT enables multiple node operators to collectively manage a validator, distributing the responsibilities among different parties to reduce the risks of failure, downtime, and centralization.
According to Alon Muroch, founder and CEO of SSV Labs, the module offers a new way for NOs to participate permissionlessly, while seamlessly integrating DVT to strengthen their own operations.
The SSV Network currently secures over 2 million ETH (valued at over $4.7 billion) via 1,400+ globally distributed node operators, demonstrating its proven ability to enhance network reliability.
The Importance of Permissionless Staking and Lido’s Decentralization
Decentralization remains a core priority for Ethereum, particularly as institutional interest in staking continues to rise. By introducing permissionless access to Lido, the proposal could attract a more diverse set of validators, reducing reliance on large staking entities.
Lido’s dominance in Ethereum staking has sparked ongoing discussions regarding liquid staking centralization risks. Critics argue that concentrating a significant portion of staked ETH under a few select validators increases systemic risks for Ethereum’s consensus mechanism. This is precisely where Clusterform’s proposal could be a game changer.
If adopted, this third-party staking module would:
Expand access to staking by allowing a broader range of node operators to participate.
Enhance Ethereum’s decentralization by distributing validator control across a wider operator set.
Improve staking security by utilizing DVT to eliminate single points of failure.
Reduce risks associated with centralized staking providers.
According to Elad Gafini, operations manager at the SSV Foundation, this proposal represents a critical step toward more secure and trustless staking participation:
The proposal comes at a time of growing institutional interest in Ethereum staking, especially after the 2024 US presidential election, where Donald Trump’s victory led to renewed speculation about a more crypto-friendly regulatory environment. Many institutions are now exploring staking as a viable investment strategy, particularly with the increasing possibility of an Ethereum exchange-traded fund (ETF).
Lido v3, launched in February 2025, was designed to make staking more flexible and composable for institutional investors. However, existing staking infrastructure still presents challenges, such as:
Single points of failure in validator setups.
Coordination inefficiencies among node operators.
High risks of downtime due to over-reliance on centralized infrastructure.
Muroch emphasized how SSV’s DVT solution can address these concerns, saying ,“By using SSV, coordination is programmatically taken care of (e.g., using DKG), which reduces human error. Institutions can increase performance and reduce the risk of downtime by distributing node operations between multiple nodes instead of relying on just one node.”
This aligns with the broader trend of risk-averse institutional players seeking safer and more decentralized staking solutions.
The proposal now awaits review and potential approval by the Lido DAO, which governs Lido’s protocol upgrades and staking architecture. If accepted, this could mark a pivotal moment for the Ethereum staking ecosystem.
Clusterform’s proposal represents a bold step toward improving Ethereum staking infrastructure, leveraging SSV Network’s DVT technology to:
Reduce centralization risks in Lido’s validator set.
Enhance network resilience and uptime.
Make Ethereum staking more accessible and secure.
As Ethereum’s staking landscape continues to evolve, permissionless staking could become a defining feature of its next phase of growth. Whether this proposal is approved or not, the increasing adoption of DVT suggests that Ethereum’s future is heading toward a more decentralized, scalable, and resilient ecosystem.
