How 2.2 Million Verified Identities Are Reshaping Profit Distribution in Lido ETH Staking
Mass identity verification hits Ethereum staking—and the profit dynamics just shifted dramatically.
The Scale-Up
With 2.2 million verified users now in the ecosystem, Lido's staking platform faces a redistribution of influence. More identities mean more granular participation—staking rewards aren't just flowing to the usual whales.
New Rules, New Winners
Smaller holders gain leverage. Verified identities reduce sybil risks—authentic participants claim a larger slice of the yield pie. Traditional big players now compete with a mobilized crowd.
The Compliance Edge
Regulatory clarity attracts institutional flow. Verified stakers bypass ambiguity—staking becomes less speculative, more strategic. Yield farming meets know-your-customer protocols.
Finance, Only Slightly Less Predatory
Even in decentralized finance, someone's always counting everyone else's money—but now they can't hide behind anonymity. How ironic that transparency might be the ultimate disruptor.
Proof of humanity for Ethereum staking
Proof of humanity includes verification through Human Passport and Circles, converted to ICS points via a dedicated interface inside Passport that outputs a Unique Humanity score aligned with the ICS model. Per Lido, Human Passport has more than 2.2 million users, and the ICS weighting increases some credentials where the program seeks higher confidence for staker identification.
CSM remains permissionless, participation without ICS is still available, and the new process does not replace open access. ICS functions as an additional operator type in v2, with differentiated parameters that aim to route early capacity to verified individuals while preserving controls around validator performance and strike policies.
Applications are open now. The first review round closes on Oct. 1, with approved addresses scheduled to be nominated to the on-chain ICS list through Easy Track governance around Oct. 8, after which operators can claim the ICS node type in the CSM interface.
The launch timing ties into CSM v2, which Lido says will raise the community staking share limit to 5 percent, expanding the portion of stake directed through the module once the upgrade lands. Lido framed the change as a way to expand room for community stakers while keeping the system open to all operators through the permissionless path.
Lido reiterated the scoring categories and ICS purpose on its social channels, noting that Entry Gates in v2 will allow parameters to be assigned per operator group, with ICS as the first such gate.
The application FLOW runs through the CSM widget, with an option to connect the main operating address, add up to five supporting addresses for additional proofs, and include contact information. If approved, the ICS status will show an estimated date for the next list update.
If not approved, applicants can revise and resubmit for a later round, and all validators can continue operating on the permissionless track in parallel.
Benefits of ICS for community stakers
Lido positions the track as a mechanism to route early deposits and fee share to individuals who can verify they run independent operations, using external proofs to reduce sybil risk while preserving privacy through credential-based checks rather than identity disclosure.
The first list update and the v2 cutover will determine how quickly ICS operators see deposits Flow through the priority queue, then fee share and bond changes will apply to those initial keys as configured.
Lido’s guidance focuses on round one approvals and the Oct. 8 Easy Track action, setting the next steps for applicants preparing to run validators under the ICS parameters once the upgrade is live.
