I published an in-depth explainer on EIP-7251 for those interested in learning more about the proposal to increase MAX_EFFECTIVE_BALANCE from 32 ETH to 2048 ETH and implement in-protocol validator consolidation as a solution to the problem of contracting the Beacon Chain’s validator set: EIP-7251: Implications of Increasing MaxEB for Validators.
The article explains how EIP-7251 modifies aspects of the consensus protocol like validator activation, deposits, withdrawals, and slashing penalties to enable validator consolidation while preserving the Beacon Chain’s existing security properties. It also addresses regarding increased slashing risk for large validators and (potential) regulatory issues arising from implementing EIP-7251’s auto-compounding rewards feature. All comments/feedback are welcome.