A protocol enabling secure, non-custodial coordination between multiple operators to run Ethereum validators through Distributed Validator Technology (DVT).

Introduction

Obol is a protocol built to support the decentralized operation of Ethereum validators through a system called Distributed Validator Technology (DVT). Instead of relying on a single operator to manage a validator, Obol allows a group of independent operators to coordinate securely and jointly perform validator duties. This structure reduces single points of failure and promotes network resilience. The protocol includes middleware tools, smart contracts, and developer infrastructure to manage these distributed validators effectively, while remaining compatible with existing Ethereum clients and standards.

What is Obol (OBOL)?

Obol is a middleware protocol designed to support Distributed Validator Technology (DVT) on Ethereum. It enables multiple operators to jointly run a single validator through a distributed architecture. The protocol’s primary component, Charon, facilitates this coordination without replacing existing validator clients.

Charon operates as a Go-based middleware that sits between the validator client and the beacon node. It intercepts and proxies API traffic, allowing multiple Charon clients to communicate and reach consensus on validator duties. This setup forms a cluster that behaves as a unified proof-of-stake validator. Each operator within the cluster holds a share of the validator’s private key, generated through a Distributed Key Generation (DKG) process. This method ensures that no single operator has access to the complete private key, enhancing security by reducing single points of failure.

The networking model of Charon comprises two parts: the internal validator stack and the external peer-to-peer (p2p) network. Internally, Charon connects to an upstream beacon node and a downstream validator client. Externally, Charon clients within a cluster connect via a p2p network using the libp2p protocol. This network is limited to clients within the same cluster, and communication is facilitated through relay servers. These relays assist in peer discovery and connection establishment, especially in scenarios involving Network Address Translation (NAT).

Obol’s approach to DVT emphasizes non-custodial operations. The protocol does not require validator private keys to be stored on-chain or in a centralized location. Instead, key shares are generated and stored locally by each operator. This design choice minimizes the risk associated with key compromise and unauthorized access.

History, Team, Investors of Obol

Obol Labs was established in 2021 by Collin Myers, Oisín Kyne, and Chris Battenfield. The organization focuses on developing Distributed Validator Technology (DVT) to enhance the decentralization and security of Ethereum’s staking infrastructure. Myers, serving as CEO, previously held roles at ConsenSys and MUFG, bringing experience in blockchain strategy and financial services. Kyne, as CTO, contributes expertise in software engineering and cryptographic systems. Battenfield, as Head of Product, oversees the development and deployment of Obol’s tools and services.

The team expanded to include professionals such as Richard Malone, Head of Business, and Nanni Sackmann, Chief People Officer. Engineers like Edax Uclés and Maelíosa Kyne have been instrumental in building the technical components of the Obol Network. The collective efforts of these individuals have been central to advancing Obol’s mission of promoting decentralized staking solutions.

Obol Labs has secured funding through multiple investment rounds. In 2021, the company raised $6.15 million in a seed round with participation from Ethereal Ventures, Acrylic Capital, and Coinbase Ventures. A subsequent Series A round in January 2023 brought in an additional $12.5 million, co-led by Pantera Capital and Archetype. This funding has supported the development of Obol’s DVT infrastructure and the expansion of its team.

The company has also received backing from a range of strategic investors and advisors. Notable contributors include Figment Capital, Blockdaemon, StakeFish, and Chorus One. Individual advisors such as Stefan George of Gnosis, Jim McDonald of Attestant, and Mariano Conti, formerly of the Maker Foundation, have provided guidance on technical and strategic matters. These partnerships have facilitated the integration of Obol’s technology into various staking ecosystems.

Obol Main Features

OBOL Launchpad

The DV Launchpad is a web-based application that assists users in creating Distributed Validators (DVs) either individually or collaboratively. It guides users through the process of setting up a validator cluster, including the generation of distributed validator keys and the configuration of necessary components. The Launchpad ensures that each operator within the cluster holds a share of the validator’s private key, enhancing security by preventing any single operator from having full control.

The application also provides tools for testing and monitoring the performance of the validator cluster. Users can simulate various scenarios to ensure the resilience and reliability of their setup before deploying it on the Ethereum mainnet.

Charon

Charon is a middleware client developed in Go that enables the operation of a single Ethereum validator across multiple nodes. It functions by intercepting and proxying API traffic between the validator client and the beacon node. Multiple Charon clients communicate with each other to reach consensus on validator duties, effectively behaving as a unified proof-of-stake validator. This setup allows for fault tolerance, as the validator can continue to operate even if some nodes go offline, provided a supermajority remains functional.

The networking model of Charon includes both internal and external components. Internally, it connects to an upstream beacon node and a downstream validator client. Externally, Charon clients within a cluster establish a peer-to-peer network using the libp2p protocol. This network is confined to clients within the same cluster and utilizes relay servers to facilitate peer discovery and connection establishment, especially in environments with Network Address Translation (NAT).

SDK

The Obol Software Development Kit (SDK) provides developers with tools to create and manage Distributed Validators using the Obol API. It includes a set of classes, interfaces, and functions that facilitate the configuration and deployment of validator clusters. The SDK supports the definition of cluster parameters, operator roles, and reward distribution mechanisms. It also includes validation functions to ensure the integrity and consistency of the cluster configuration.

Developers can use the SDK to automate the deployment process, integrate with existing systems, and customize the behavior of their validator clusters. The SDK’s modular design allows for flexibility in adapting to various use cases and operational requirements.

Obol Splits

Obol Splits are smart contracts designed to manage the distribution of rewards among participants in a Distributed Validator cluster. These contracts define the withdrawal addresses for validators and specify the proportions in which rewards are allocated to each participant. Obol Splits are immutable, non-upgradeable, non-custodial, and do not rely on external oracles. This design ensures transparency and security in the reward distribution process.

By using Obol Splits, validator clusters can automate the allocation of rewards based on predefined agreements. This mechanism simplifies the management of shared validators and reduces the potential for disputes among participants. The contracts are deployed on-chain, providing verifiable and tamper-resistant records of reward distributions.

Obol Stack

The Obol Stack is a modular framework that facilitates the deployment and management of decentralized applications and infrastructure. It is designed to simplify the process of running Ethereum nodes, AI agents, and other decentralized services by providing a plug-and-play architecture. The stack integrates with the Obol Network’s DVT components, enabling users to build and operate distributed systems with enhanced security and resilience.

The framework supports various use cases, including Layer 1 and Layer 2 solutions, Decentralized Physical Infrastructure Networks (DePIN), and application-specific rollups. By abstracting the complexities of infrastructure management, the Obol Stack allows developers and operators to focus on building applications without the need for extensive DevOps expertise.

Obol’s Technical Architecture

Obol Network’s technical architecture is structured to facilitate Distributed Validator Technology (DVT) on Ethereum. This architecture comprises several components, including Charon middleware, Distributed Key Generation (DKG), and a peer-to-peer networking model.

Charon is a Go-based HTTP middleware that operates between the validator client and the beacon node. It intercepts and proxies API traffic, allowing multiple Charon clients to communicate and reach consensus on validator duties. This setup enables a group of nodes to function collectively as a single Ethereum validator. Each node in the cluster holds a share of the validator’s private key, generated through a DKG process. This design ensures that no single node possesses the complete private key, enhancing security by reducing single points of failure.

The DKG process involves operators and their Charon clients. Operators are identified by their Ethereum addresses, and Charon clients are identified by Ethereum Node Records (ENRs). During the DKG ceremony, each Charon client establishes connections with its peers, verifies the cluster definition, and generates key shares. The output includes validator keystores, a cluster lock file, and validator deposit data. These artifacts are essential for activating and managing distributed validators on the Ethereum network.

What is the OBOL Token?

OBOL Token Utility

The OBOL token is used for governance, staking, and coordination within the Obol Collective. Token holders can delegate their voting power to influence proposals in the Token House and allocate funding through the Retroactive Funding mechanism. The token also supports staking via a liquid staking system, where users receive stOBOL in return for their deposits. Future integrations are expected to include DeFi applications and restaking protocols such as EigenLayer and Symbiotic.

OBOL Supply and Allocation

The OBOL token has a fixed total supply of 500 million units, distributed in:

• 38.8% – Ecosystem Treasury & Retroactive Funding (RAF)
  Reserved to support ongoing development, public goods funding, and distributed validator infrastructure through retroactive grants and treasury-managed initiatives.

• 23.7% – Investors
  Allocated to private investors who participated in seed and Series A funding rounds to support the early development of Obol Network.

• 19% – Team
  Assigned to the main contributors and founding team members, subject to vesting schedules to align long-term commitment.

• 7.5% – Community Incentives
  Designed to reward community engagement, testing, and participation in distributed validator operations and governance.

• 7.5% – Airdrop
  Distributed to early community supporters and contributors who participated in testnets and development activities.

• 3.6% – CoinList
  Allocated through a public sale on CoinList, enabling broader token distribution and community ownership.

OBOL Vesting Schedule

The OBOL token follows a gradual vesting schedule extending from early 2025 to 2028. The initial token distribution begins in January 2025 with a small circulating supply. Unlocks accelerate from early 2026, where investor, team, community, and treasury allocations increase in phased intervals. CoinList allocations unlock earlier, while larger categories such as the Ecosystem Treasury & RAF and investor shares release steadily over time. Full token unlock is projected to be reached by early 2029, subject to adjustments by governance. This schedule is intended to align long-term incentives and limit short-term sell pressure.

Obol’s Economic Design

Obol’s economic design centers on a structured utility model for the OBOL token, which supports governance, staking, and funding mechanisms within the network. The governance framework is built around the Token House, where OBOL holders delegate voting power to representatives who propose and vote on protocol changes, upgrades, and funding decisions. A separate mechanism, called Retroactive Funding (RAF), allows the community to allocate treasury resources to public goods and infrastructure contributors based on past impact, aligning funding with ecosystem development. The staking system introduces stOBOL, a liquid representation of staked OBOL tokens, which enables users to participate in governance while earning staking rewards.

Obol Governance

Obol Network’s governance framework is structured to ensure decentralized decision-making and resource allocation. Central to this framework is the Token House, where OBOL token holders delegate their voting power to representatives. These delegates participate in decision-making processes, including voting on proposals related to protocol upgrades, funding allocations, and strategic initiatives. The governance process involves proposal submission, community feedback, and delegate approval before moving to a vote. This structure is designed to maintain the network’s integrity and align with its mission to support Ethereum’s decentralization.

Conclusion

Obol is structured as a protocol infrastructure project focused on enhancing Ethereum validator decentralization through distributed validator technology. It does so by combining cryptographic coordination, operator diversity, and non-custodial validator management into a middleware layer that works with existing consensus clients. The project introduced several components to support this structure, including Charon, the SDK, Launchpad, Obol Splits, and the modular Obol Stack. Its technical framework is underpinned by distributed key generation, fault-tolerant consensus between validator nodes, and secure peer-to-peer messaging using libp2p. The team behind Obol Labs brings prior experience from blockchain and software engineering roles, and the project has received backing from well-known investors and contributors in the Ethereum staking ecosystem.