# \[DIP-50\] Introduction of Effective Balance Oracles, Effective Balance Accounting, ETH-denominated Payments, and SSV Staking

**URL:** <https://forum.ssv.network/t/dip-50-introduction-of-effective-balance-oracles-effective-balance-accounting-eth-denominated-payments-and-ssv-staking/2106>\
**Category:** DIP (DAO Improvement)\
**Created:** [March 6, 2026, 6:38pm UTC](https://forum.ssv.network/t/dip-50-introduction-of-effective-balance-oracles-effective-balance-accounting-eth-denominated-payments-and-ssv-staking/2106 "2026-03-06T18:38:23Z")\
**Posts on this page:** 9\
**Page:** 1

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**Author:** ![BenAffleck](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ssv.network/benaffleck/32/19_2.png) [@BenAffleck](https://forum.ssv.network/u/BenAffleck)\
**Post date:** [March 6, 2026, 6:38pm UTC](https://forum.ssv.network/t/dip-50-introduction-of-effective-balance-oracles-effective-balance-accounting-eth-denominated-payments-and-ssv-staking/2106/1 "2026-03-06T18:38:24Z")

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## **Proposal Summary**

The ssv.network DAO (“DAO”) proposes introducing SSV Staking as part of a _broader set of protocol upgrades_ designed to support ETH-denominated payments and native effective balance accounting within the SSV Network.

The transition to ETH payments simplifies the protocol’s economic model by aligning fee settlement with the asset in which validator rewards are generated. Moving fee payments to ETH removes cross-asset dependencies, reduces operational complexity, and enables more direct and predictable protocol-level accounting.

In parallel, supporting Ethereum’s post-Pectra validator model requires effective balance-aware accounting. Effective Balance Accounting (EBA) ensures that fees, runway calculations, and liquidation logic scale with the actual stake secured by validators, rather than relying on fixed assumptions. Implementing this model natively requires the protocol to reflect validator effective balances on-chain throughout their lifecycle.

To bridge the gap between Ethereum’s consensus layer and on-chain accounting, the protocol introduces Effective Balance Oracles (EBO), which track validator balances and update protocol state. Operating this oracle system in a decentralized and resilient manner requires participation and delegation by parties economically aligned with the protocol.

SSV Staking provides such a delegation mechanism, allowing SSV holders to stake their tokens and delegate their stake toward the selection of EBOs. Initially, there will be four permissioned EBOs; later, a DAO proposal will follow to allow permissionless EBOs. In doing so, protocol fee flows are reflected through the staking mechanism in proportion to protocol usage, strengthening alignment between token holders and the network.

### **Proposal Particulars**

This proposal establishes the following:

1. Proposal Summary
2. Proposal Particulars
3. Proposal Applicability
  - a. Payment, Validator and Operator Changes
  - b. Effective Balance Accounting and Effective Balance Oracle Introduction
  - c. ssv.network DAO Multi-sig Committee Required Actions
    - i. SSV Parameters
    - ii. ETH Parameters
    - iii. Operator’s fee transition to ETH fees
    - iv. SSV Staking Parameters

  - d. Incentivized Mainnet Changes
  - c. SSV Foundation Required Actions

## Proposal Applicability

If this proposal were to pass, the following would be its consequences:

### Payment, Validator and Operator Changes

1. A transition to ETH payments, which means all new clusters will operate with ETH payments from the outset, meaning:

2. Cluster migration - To migrate, the cluster owner initiates the migration and deposits sufficient ETH to fund the cluster’s future operation runway under the ETH payment model. As part of the migration, the cluster’s accounting is switched from SSV to ETH, and any remaining SSV balance is returned to the cluster owner. Migration is a one-way process - once a cluster is migrated to ETH payments, it cannot revert back to SSV-based payments.

3. New Operators - New operators onboard directly with ETH-denominated fees. From launch onward, operators registering in the network will not be able to define or configure fees in SSV, and will operate exclusively under the ETH payment model.

4. Existing Operators - Existing operators continue earning SSV-denominated fees only for clusters that have not yet migrated. These SSV fees continue to accrue, but operators are no longer able to modify or adjust their SSV fee configuration. Accrued fees can still be withdrawn. Once their clusters migrate to ETH payments, or when new ETH-denominated clusters are onboarded, operators begin earning fees in ETH based on their pre-assigned ETH fee configuration. The relevant fee can be found further below.

### Effective Balance Accounting and Effective Balance Oracle Introduction

1. Introduction of EBA - In the ETH-based model effective balance becomes the billing unit. Fees are defined per 32 ETH of effective balance and scale with a cluster’s total effective balance, rather than with validator count:  
 ![image](https://canada1.discourse-cdn.com/flex030/uploads/ssvnetwork/original/2X/f/fd9b310d4585ebf2a249e1a647991b2ed49a167b.png)

2. Introduction of permissioned EBOs.

### ssv.network DAO Multi-sig Committee Required Actions

1. The ssv.network DAO Multi-sig (MC) will update the following audited smart contracts to support the above operations:

2. The MC will be required to add new smart contract modules to the abovementioned smart contracts, via the update mechanism already used in [[DIP-19] Scaling Permissioned Operators Upgrade](https://forum.ssv.network/t/dip-19-scaling-permissioned-operators-upgrade/1420) :

3. The MC will be required to update the modules of the abovementioned smart contracts, which are:

4. The “SSVNetwork” smart contract (section 7. subsection a) will gain the right to mint and burn cSSV. An ERC-20 token is received when SSV is staked into the abovementioned SSV Staking module by owners of SSV tokens, and it represents their staked position at a 1:1 ratio. Protocol fees accrue continuously as validators operate on the SSV Network and generate ongoing network fees. Stakers earn a pro-rata share of ETH-denominated fees, based on their share of the total staked SSV. Rewards can be claimed at any time without unstaking, and claiming does not affect the staking position.

5. If any source of the variables required for the formulas listed under section 16. was not adequately defined or is ambiguous, the Master of Coin will have the discretion to decide the source and method of calculation of such a variable. Any such decision must be publicized to the DAO forum in order to be effective. The MoC can only do this once per variable. Notwithstanding the foregoing, the MC will have the authority to amend any such source or method of calculation if any source or method becomes corrupted, unavailable, or becomes a security concern for the protocol. Such a decision by the multisig will follow the steps described by the Detrimental Situation procedure as described in [[DIP-2] Multi-Sig Committee](https://snapshot.box/#/s:mainnet.ssvnetwork.eth/proposal/0x393b81f83e63e6ecbd95a61d88ecc53d8668e6a2b32a5f323291860c280dd050) **.**

6. SSV-denominated clusters will use the following formulas for their parameters:

- a. Minimum Liquidation Collateral (prescribed by [[DIP-44] Re-Evaluation of Liquidation Collateral and Network Fee Parameters](https://snapshot.org/#/s:mainnet.ssvnetwork.eth/proposal/0x5ab8383681f4efec61c1e89388477e18de3f1b9a34ce1fef001e55043a8f3273) (“DIP-44”):  

- b. Liquidation Threshold (prescribed by DIP-44):  

- c. Network Fee - Prescribed by [[DIP-49] Network Fee Ratio Maximum](https://snapshot.org/#/s:mainnet.ssvnetwork.eth/proposal/0x5300de7fd0df8c07b06b1e4ad71bdf036945b26787b0157d70ab80fee3ad4126)

1. ETH-denominated clusters will use the following formulas for their parameters:

- a. Minimum Liquidation Collateral:  
 ![image](https://canada1.discourse-cdn.com/flex030/uploads/ssvnetwork/original/2X/b/ba84920104c999e1039e1aedf1426babd2a4ed9b.png)  
The sources and values for the variables of the Minimum Liquidation Collateral calculation are as follows:

- b. Liquidation Threshold:  

- c. Network fee:  

1. The MC will be tasked with updating the parameters listed under section 12 subsection (a), section 12 subsection (b), section 13 subsection (a), section 13 subsection (b), every quarter starting in April in the First Scheduled Batch of the months as described by [[DIP-26] ssv.network DAO Four-Year Budget (2024-2028)](https://snapshot.org/#/s:mainnet.ssvnetwork.eth/proposal/0xff1b868f97de48db3ba26c5254e9902645ed55b5107a84ee0cbcb98b31973f27) (“DIP-26”), using a 6-month trailing moving average, for the variables listed under the aforementioned sections, with data available at [etherscan.io](http://etherscan.io).

2. If the proposed parameter changes are implemented after March 31, 2026, the MC must recalculate all values and variables using the most recent data available from either the First or Second Scheduled Batch (per DIP-26). If implementation occurs before the Second Scheduled Batch, the First Scheduled Batch data will be used instead.

3. The following will become DAO-controlled parameters:

#### **SSV Parameters**

The following parameters will be set for SSV-Denominated clusters:

| Variable | Proposed Value |
| --- | --- |
| _ **minimumLiquidationCollateralSSV** _ | 0.673652 SSV |
| _ **minimumBlocksBeforeLiquidationSSV** _ | 50,120 |

#### **ETH Parameters**

The following parameters will be set for ETH-denominated clusters:

| Variable | Description | Update function | Proposed Value |
| --- | --- | --- | --- |
| _ **ethNetworkFee** _ | Protocol network fee charged in ETH. | updateNetworkFee(uint256 fee) | 3557600000 wei ETH (~0.00929768 ETH Annual) |
| _ **minimumLiquidationCollateral** _ | Minimum ETH collateral an ETH-denominated cluster must maintain; falling below this level contributes to liquidation eligibility. | updateMinimumLiquidationCollateral(uint256 amount) | 644852000000000 wei ETH |
| _ **minimumBlocksBeforeLiquidation** _ | Minimum number of blocks an ETH-denominated cluster must maintain a sufficient balance before becoming eligible for liquidation. | updateLiquidationThresholdPeriod(uint64 blocks) | 21,480 |
| _ **minimumOperatorEthFee** _ | Minimum operator fee cap for fees denominated in ETH. | updateMinimumOperatorEthFee(uint256 minFee) | 10000000 wei ETH(~0.0000262 ETH annual) |
| _ **operatorMaxFee** _ | Maximum operator fee cap, setting a technical upper bound on operator fees denominated in ETH. This parameter exists as a protocol safety constraint to prevent extreme fee configurations and is not intended to express economic policy or target fee levels. | updateMaximumOperatorFee(uint256 maxFee) | 5336500000 wei ETH (~0.01395 ETH annual) |
| _ **defaultOperatorETHFee** _ | Default ETH-denominated operator fee applied to existing operators during the transition from SSV-denominated fees to ETH-denominated fees. | Not governance-controlled. The default value is defined in the contract and applied automatically; it exists solely to facilitate operator migration and ensure continuity during the transition period. | 1778800000 wei ETH (~0.00465 ETH annual) |

**Operator’s fee transition to ETH fees**

| Operator charging | New Operator fees |
| --- | --- |
| **0 SSV** | 0 ETH |
| **\<0 SSV** | 1778800000 wei ETH (~0.00465 ETH annual) |

#### **SSV Staking Parameters**

| Variable | Proposed Value | Description |
| --- | --- | --- |
| **cooldownDuration** | 604800 | Unstake cooldown duration (in seconds): the period users must wait between requesting an unstake and being able to withdraw their unlocked SSV. |
| **quorumBps** | 7500 (75.00%) | Quorum threshold (in BPS) required for committing an effective balance snapshot |

### **Incentivized Mainnet Changes**

1. With the introduction of ETH payments, network fees for ETH-denominated clusters are no longer compatible with the Incentivized Mainnet (IM) fee deduction mechanism. Because ETH-cluster fees are already enforced on-chain via the new effective balance accounting model, off-chain deductions via the IM script are obsolete. For ETH-denominated clusters\*\*,\*\* Network fee deductions are removed. For SSV-based clusters\*\*,\*\* Network fees continue to be deducted from IM rewards under the existing model. To support this separation between legacy SSV-based and ETH-denominated clusters, a new Merkle Distributor contract will be deployed. This architectural separation ensures that incentive distribution remains aligned with each cluster’s accounting model. For Legacy clusters\*\*,\*\* claim rewards from the existing distributor. For ETH-denominated clusters\*\*,\*\* claim rewards exclusively through the new distributor contract. For Dual Participants\*\*,\*\* claim rewards separately per accounting type, interacting with both contracts accordingly.

### **SSV Foundation Required Actions**

1. The SSV Foundation (Foundation) will be tasked with compensating the abovementioned EBOs. The funding will be provided by the Foundation from the [[DIP-42] SSV Foundation business development budget](https://snapshot.box/#/s:mainnet.ssvnetwork.eth/proposal/0x38dbd28c90eade3a77c3d6ab638c04743cb3f4de7e3293990674979b85cd06ea) in the amount of 250 USD denominated in SSV, per month, based on a 7-day trailing moving average, calculated on the first of the month, for the previous month, executed in the First Scheduled batch for the duration of the permissioned phase of EBOs. Additionally, the Foundation will reimburse all Ethereum transaction costs incurred by the EBOs as part of their oracle duties, including balance updates and Merkle root submissions. In order to avoid unforeseen activity and liability, a cap to this reimbursement shall be defined as follows: in any given month, no single EBO will be reimbursed more than 0.5 ETH for the incurred transaction costs.

2. The Foundation and the DAO will not participate in SSV staking for 6 months from the passing of this proposal. After this period, the DAO will reassess in a new DAO proposal whether and to what extent the Foundation or the DAO will participate in SSV Staking.

3. The Foundation will update the SSV Network snapshot space and delegation-related tooling to adapt the voting strategies to support the cSSV token.

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**Author:** ![monitorssv](https://avatars.discourse-cdn.com/v4/letter/m/4491bb/32.png) [@monitorssv](https://forum.ssv.network/u/monitorssv)\
**Post date:** [March 7, 2026, 2:37am UTC](https://forum.ssv.network/t/dip-50-introduction-of-effective-balance-oracles-effective-balance-accounting-eth-denominated-payments-and-ssv-staking/2106/2 "2026-03-07T02:37:10Z")

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Cool, monitorssv will actively support the mainnet upgrade plan, providing the community with timely and accurate explorer services.

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**Author:** ![Ethernodes](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ssv.network/ethernodes/32/1074_2.png) [@Ethernodes](https://forum.ssv.network/u/Ethernodes)\
**Post date:** [March 9, 2026, 9:08pm UTC](https://forum.ssv.network/t/dip-50-introduction-of-effective-balance-oracles-effective-balance-accounting-eth-denominated-payments-and-ssv-staking/2106/3 "2026-03-09T21:08:29Z")

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Proud to be among the initial EBOs supporting SSV and its community!

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**Author:** ![Yuting](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ssv.network/yuting/32/1096_2.png) [@Yuting](https://forum.ssv.network/u/Yuting)\
**Post date:** [March 10, 2026, 2:26am UTC](https://forum.ssv.network/t/dip-50-introduction-of-effective-balance-oracles-effective-balance-accounting-eth-denominated-payments-and-ssv-staking/2106/4 "2026-03-10T02:26:18Z")

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As the Incentivized Mainnet Program Administrator, I endorse the dual-track strategy for IMP distribution

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**Author:** ![Kraken](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ssv.network/kraken/32/1234_2.png) [@Kraken](https://forum.ssv.network/u/Kraken)\
**Post date:** [March 12, 2026, 2:56pm UTC](https://forum.ssv.network/t/dip-50-introduction-of-effective-balance-oracles-effective-balance-accounting-eth-denominated-payments-and-ssv-staking/2106/5 "2026-03-12T14:56:42Z")

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Kraken will be part of EBOs

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**Author:** ![flo](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ssv.network/flo/32/784_2.png) [@flo](https://forum.ssv.network/u/flo)\
**Post date:** [March 14, 2026, 3:27am UTC](https://forum.ssv.network/t/dip-50-introduction-of-effective-balance-oracles-effective-balance-accounting-eth-denominated-payments-and-ssv-staking/2106/6 "2026-03-14T03:27:59Z")

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…major upgrade imho - congrats on this proposal!

one question: do i understand right that EBOs will be handling liquidations at the same time? or will it still be necessary to run liquidator bots?  
furthermore, how about incentive mechanisms for EBOs once they will be permissionless - in order to push decentralization?

thanks for enlightening me in advance!

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**Author:** ![BenAffleck](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ssv.network/benaffleck/32/19_2.png) [@BenAffleck](https://forum.ssv.network/u/BenAffleck)\
**Post date:** [March 14, 2026, 5:40am UTC](https://forum.ssv.network/t/dip-50-introduction-of-effective-balance-oracles-effective-balance-accounting-eth-denominated-payments-and-ssv-staking/2106/7 "2026-03-14T05:40:17Z")

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Voting is now live 🚦  
[https://snapshot.org/#/s:mainnet.ssvnetwork.eth/proposal/0x5a5ee1ef6d4ab1895885a72b35c8d198b8f2ea1b41749817f6c14d9a8f167c51](https://snapshot.org/#/s:mainnet.ssvnetwork.eth/proposal/0x5a5ee1ef6d4ab1895885a72b35c8d198b8f2ea1b41749817f6c14d9a8f167c51)

@fod @spookyg @derfredy @h.m.23-0neinfra @hackworth @markoinether @flo @monitorssv @yuting @thomasblock @llifezou @sigmaprime @damon @lemmagov @hashkeygov @ethernodes @chainupgov @kenway @allnodes @dsrvgov

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**Author:** ![BenAffleck](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.ssv.network/benaffleck/32/19_2.png) [@BenAffleck](https://forum.ssv.network/u/BenAffleck)\
**Post date:** [March 14, 2026, 5:55am UTC](https://forum.ssv.network/t/dip-50-introduction-of-effective-balance-oracles-effective-balance-accounting-eth-denominated-payments-and-ssv-staking/2106/8 "2026-03-14T05:55:30Z")

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> [@flo](#):
>
> do i understand right that EBOs will be handling liquidations at the same time? or will it still be necessary to run liquidator bots?
> 
> furthermore, how about incentive mechanisms for EBOs once they will be permissionless - in order to push decentralization?

Good day, @flo 👋

Good questions!

To my knowledge, liquidation is not related to the activities of the EBOs and can be carried out by anyone willing to use liquidation software and with a realistic chance of success.

Currently, there are no details on how the incentivization structure for EBOs in the permissionless phase will be designed. However, we will keep everyone updated as soon as more information becomes available.

Thank you very much for your support!  
—Ben

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**Author:** ![sili](https://avatars.discourse-cdn.com/v4/letter/s/dbc845/32.png) [@sili](https://forum.ssv.network/u/sili)\
**Post date:** [March 19, 2026, 2:47pm UTC](https://forum.ssv.network/t/dip-50-introduction-of-effective-balance-oracles-effective-balance-accounting-eth-denominated-payments-and-ssv-staking/2106/9 "2026-03-19T14:47:39Z")

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Excited for the mainnet! InfStones will be part of the EBO set 🚀