Withdrawal Credentials

Withdrawal credentials are the data attached to a validator that specify where its stake and rewards go when they leave the network. They are set when the validator is first deposited and activated, and on Ethereum they can point either to a hash of a withdrawal key or directly to an execution-layer address, which is what enables automatic payouts. The distinction matters because signing keys and withdrawal keys are separate: a staking operator can hold the signing key needed to perform validator duties while the depositor keeps sole control over where funds may ever be withdrawn. Setting credentials to an address you do not control, or losing the withdrawal key, can make staked funds permanently unrecoverable.