Gate's core development team is considering a substantial modification to the validator staking requirements. The proposal, which was presented during a recent consensus meeting, suggests increasing the minimum staked Ether (ETH) for validators from 32 ETH to a staggering 2048 ETH - a 64-fold increase.

The initiative, introduced by a prominent blockchain researcher, aims to address the current inflation of the validator set size. While the existing 32 ETH threshold has promoted decentralization by allowing more participants to become validators, it has also led to an exponential growth in the validator pool.

According to the researcher, this significant increase could enhance the network's efficiency over time. Alongside the proposed stake increase, the concept of auto-compounding validator rewards was also put forward.

The introduction of auto-compounding rewards could potentially boost validators' earnings from their staked ETH. Under the current system, any rewards exceeding the 32 ETH cap must be transferred to a separate account to generate staking income. By raising this cap, validators could benefit from rapid compounding, providing a practical avenue for increasing their reward potential.

Proponents argue that these changes would not only optimize network efficiency and potentially increase validator earnings, but also simplify operations for large-scale node operators, including exchanges that currently manage numerous validators.

The existing 32 ETH limit has triggered a substantial increase in validator addresses following the network's transition to a proof-of-stake consensus mechanism. At present, the network boasts over 700,000 active validators, with approximately 90,000 more in the activation queue.

However, the proposal has elicited mixed reactions within the crypto community. Some users express concern that such a significant increase in the staking requirement could lead to a reduction in the number of validators, potentially compromising the network's decentralization. Others have dismissed the idea, questioning its overall benefit to the network.

As discussions continue, it remains to be seen how this proposal will evolve and what impact it might have on the future of staking and validation within the ecosystem.