Ethereum validator withdrawals
Supply surge dynamics from partial withdrawals and validator exits
February 2023 Update:
The original piece was written during the height of the Celsius recursive stETH trade and paints a more bearish picture than I think is now justified (six-months later). With the rise of liquid staking derivatives I suspect that the withdrawals unlock exodus event will be more mild than the following analysis suggests.
The process has also moderately changed. The most recent consensus specs are available here. A FAQ thread based on the process is available here.
Detailed modern analysis is available here: