As you know, Ethereum has been in a transition for quite some time. The Ethereum 2.0, Ethereum with PoS, and vast scalability. Vitalik Buterin announced the deposit address for ETH2 Beacon Chain on Twitter on November 4th.
After 19 days, the deposit contract address over 50% deposits with ~278,000 staked. And in just one day the launch threshold of 524,288 ETH has been reached with bulk deposits. On December 1st the Ethereum 2.0 Beacon Chain has went live
At the time of writing, 2,102,786 ETH has already been staked in the deposit contract. With 1 ETH sits at $726, that is more than $1.5 billion staked and locked in Ethereum Beacon Chain. Phase 0 of the transition from PoW to PoS has begun. There will be 4 Phases.
On December 1, 2020, Phase 0 started. Investors have started to stake ETH by sending and deposit contract on Beacon Chain. To earn rewards for securing the network, one needs to be a validator which requires at least 32ETH staked. It is estimated that sometime in 2021 Phase 1 will be achieved then Phase 1.5 where Ethereum Network as we know will become a shard in the new Ethereum network and the last part of the transition is Phase 2.
The image above shows the annual percentage rate(APR) against the total ETH staked. As you can see rewards will decline as the total staked ETH increases. As anyone can participate in ETH staking by running a node and a validator node, not everyone owns 32ETH. 32ETH is the key here because, for anyone to be a validator, a minimum of 32ETH needs to be staked. There are many pools for anyone who doesn’t have 32ETH or has 32 or more ETH but does not have the necessary technical skills. Let’s make a simple comparison between running a validator node and joining a pool.
Thinking about not being able to touch your investment and the earnings for nearly 2 years, staking via 3rd party might not be a so bad choice after all. You can stake on KuCoin by clicking here.
Binance allows anyone to stake as low as 0.0001ETH to stake and covering all the slashing cut and server expenses. In addition to that, there are no fees, 100% of the earning will be transferred to your account. Click here to sign up and start staking.
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Have a nice day :)
