“It’s the job that’s never started as takes longest to finish.” — Samwise Gamgee

In our previous article, we introduced the concept of a regenerative stack. Now, at the foundation of that stack lies squad staking — a method for multiple people to collectively stake a total of 32 ETH. By pooling resources, squad staking removes the burden of having to be a solo operator with the full 32 ETH and dramatically lowers the cost barrier to participate in Ethereum’s proof-of-stake consensus. Leading the charge in this paradigm are Obol, Dappnode, and Lido, which together provide the software, hardware, and economic framework to make squad staking a reality. Within the Dev Guild, we believe staking can become a foundational source of public goods funding, aligning individual incentives with collective benefit.

Obol has been pioneering Distributed Validator Technology (DVT) since 2021, enabling validators to be run by a cluster of people or organizations instead of a single operator. This technology makes “squad staking” possible by splitting a validator key across multiple nodes (and operators) who act in unison. Obol’s DVT has even been integrated into the Dappnode OS, meaning anyone running a Dappnode can easily set up a distributed validator cluster.

“Squad staking and DVT enable the participation of individuals along with communities, DAOs, groups and more.” — Collin Myers, Obol Network

Meanwhile, Dappnode provides the plug-and-play hardware side of the equation. A Dappnode is a specialized device (running a custom OS) optimized for blockchain nodes and staking. It drastically lowers the technical barrier to entry for new stakers by taking care of the technical stuff and providing a simple, user-friendly interface – no command-line expertise required. In other words, Dappnode makes it “easy for anyone to play a role in creating an open, equitable internet and access the rewards that are offered in return”. By combining Obol’s DVT software with Dappnode’s hardware, even non-experts can host part of a validator from home with minimal hassle.

The final piece of the squad staking puzzle is Lido. Through Lido’s Community Staking Module (CSM), squad stakers get a boost in the form of a sponsored ETH bond. In traditional solo staking you’d need 32 ETH, and even in protocols like Rocket Pool you currently need 8 ETH to spin up a minipool (the protocol matches the other 24 ETH). Lido’s CSM lowers the capital requirement even further – node operators can start with as little as a 1.5–2.4 ETH bond (depending on the stage) to register a validator key, and the Lido protocol supplies the rest of the stake. This permissionless entry opens the door for many more community members to become validators. In short, Obol and Dappnode provide the infrastructure (software + hardware) and Lido provides an economic on-ramp, collectively making squad staking accessible to a much wider audience than ever before.

Let’s talk numbers and why squad staking is so compelling. First, obtaining a suitable node machine (e.g. a Dappnode or DIY rig) is an upfront cost – but once you have hardware, you can put it to work in many ways. A single Ethereum node can run multiple validator instances in parallel: for example, you could solo stake 32 ETH, or run a Rocket Pool minipool with 8 ETH bonded, or join a squad-staking cluster via Obol DVT – or even do all of the above at once if your hardware is robust enough. This means one machine can leverage economies of scale by securing several validators across different protocols.

With Obol’s DVT in particular, a single operator can be part of multiple validator “squads” on one machine, effectively multiplying their staking rewards without needing separate hardware for each validator. For instance, one Dappnode device might participate in 5 different DVT clusters simultaneously, contributing to 5 validators at once. Compare this to traditional solo staking where one machine = one validator: the difference in potential yield is significant. Obol also introduced the Techne credential (non-transferable NFT badges) for node operators, which helps new or small operators build reputation. Earning a Techne credential signals to the community that a squad member has proven their skills and reliability — opening the door to opportunity with blockchains and protocols seeking validators.

In summary, the economics of squad staking offer lower individual cost and higher collective output. A quick comparison:

• Solo Staking: 32 ETH required per validator; one person shoulders it all. Yields ~4–5% APY on that 32 ETH (all rewards to one staker).

• Rocket Pool (8 ETH minipool): 8 ETH required (plus some RPL) for the node operator; the protocol or pool provides the other 24 ETH thedefiant.io . The operator earns a commission (e.g. ~14%) on the pooled stake in addition to their portion of rewards, increasing their effective yield on the 8 ETH (but they do need to stake RPL as insurance).

• Obol Squad Staking (via DVT): Only a fraction of 32 ETH is effectively required per person (for example, 4 people could each contribute 8 ETH to collectively run one validator, or with Lido’s CSM one might bond ~2–3 ETH and get 32 ETH allocated). Rewards (the ~5% APR on 32 ETH) get split among the operators or go to whoever contributed stake, depending on the arrangement. However, each operator can join multiple validator squads, so one machine with, say, 5 validators in 5 different clusters means that operator is helping secure at minimum 160 ETH of stake in total. Their share of rewards across those could be roughly 5x what a single validator would earn, proportional to their stake and any fees. In essence, one rig can do the work of many, especially when cooperating with others.

The ability to scale up one’s participation this way is a game changer. It turns staking from a one-dimensional activity into a more flexible, potentially higher-yield endeavor – all while contributing to network decentralization.

Now, how does squad staking tie into funding public goods? This is where regenerative finance principles come in. We believe that with the right incentives, squad staking can provide a sustainable income stream for public goods (think open-source infrastructure, community projects, climate initiatives, etc.). Here’s the vision:

Through partnerships, we are working to secure hardware discounts (for example, subsidized Dappnode/Chainnode units) and bond sponsorships (covering that 2.4 ETH CSM bond via Lido) for squads who are committed to public-good staking. In practical terms, this means a motivated squad who lacks capital could receive a nearly free setup — but in return, they pledge a portion of their validator’s rewards to public goods funding. The suggested minimum is 16% of their yield, donated over agreed period of time to public goods projects. This creates a win-win cycle: the squad gets to participate in Ethereum and earn the remaining rewards, and public goods projects get a steady drip of funding without relying on one-off grants or charity.

What does 16% of yield look like? Suppose a validator earns ~1 ETH in rewards over a year (for easy math). A 16% share of that is 0.16 ETH. If that validator is part of, say, 5 squads (as discussed earlier), their yearly public good contribution could be ~0.8 ETH. Now imagine 10 such validators in a cohort – that’s 8 ETH/year donated. Scale it to 100 validators and we’re looking at 80 ETH per year (worth hundreds of thousands of dollars) fueling public goods continuously. Even on smaller scales, a handful of public-good squad validators could funnel on the order of hundreds or thousands of dollars every year to funding causes, creating a positive feedback loop between Ethereum’s success and social impact.

Of course, this model relies on those validators truly committing to the cause. That’s why we focus on aligning incentives up front (via the hardware and bond support) and fostering a community ethos where participants want to give back. In our view, it’s a modest “tax” for doing good — as Samwise might say, there’s some good in this world, and it’s worth fighting for.

A particularly transformative aspect of Squad Staking is its potential in developing countries. Hardware partnerships, such as subsidized Dappnodes, significantly reduce upfront investment. By offering discounted or sponsored hardware, we open participation to under-resourced communities, enabling them to earn ongoing staking rewards. These rewards can be directly funneled into critical local initiatives:

• Education & Skill Development: Fund blockchain education, workshops, and training sessions, creating long-term local technical capacity.

• Infrastructure Improvements: Support projects in clean energy, water purification, and sustainable agriculture, directly improving community well-being.

• Economic Independence: Provide a consistent funding stream for local businesses and cooperatives, fostering financial resilience and independence.

This decentralized infrastructure transforms into a community-owned asset, empowering local populations with not only financial returns but also the skills and resources needed to sustain long-term regenerative growth. Key to powering this infrastructure are technologies such as low orbit satellite internet, which enable validator nodes to be deployed in regions with unreliable connectivity and uptime, overcoming a major hurdle in the expansion of DePin networks. In Nigeria, Starlink has started to see large adoption and enables even the most rural locations to access to reliable internet and thus be a node in the network.

Squad staking, as the base layer of our regenerative stack, empowers more people to secure Ethereum together and channels a portion of that value to the public commons. This groundwork naturally leads us to the next layer of our journey: the Allo Alliance at the protocol layer. If squad staking is about decentralized infrastructure and grassroots fundraising, the Allo Alliance is about coordinating and deploying those funds for maximum impact. In our next article, we’ll explore how the Allo Alliance brings communities together to govern and allocate resources to public goods – moving beyond individual efforts to an alliance of builders committed to a better future. Stay tuned as we bridge the gap from powering nodes to powering entire networks of change. Read The Allo Alliance article.