Ethereum Validators Eye Custom Sweep Thresholds Amid Staking Rule Changes

Ethereum is considering a change to its staking rules that could affect how user rewards are distributed. According to draft EIP-8148, validators would be able to set their own threshold for automatic sweep, rather than relying on the current default of 2,048 ETH.

The proposal would allow compounding validators to select a level between 32 ETH and the current default, giving them more control over when their rewards are swept into the network's automatic withdrawal system. This change could potentially lock up user rewards for longer than expected, but it also offers operators and staking products more flexibility in managing reward flow.

The current rules treat legacy 0x01 credentials and compounding 0x02 validators differently. Compounding validators can increase their effective balance in 1 ETH increments up to 2,048 ETH, while excess rewards stop compounding once swept for legacy validators above 32 ETH.

EIP-8148 would also allow new 0x02 validators to encode an initial threshold in the deposit that creates them. If a creating deposit encodes a threshold below the amount deposited, the protocol would ignore it and use the default. Existing compounding validators would begin at the default and could later submit a valid request.