Staking on Ethereum (Eth 2.0) Starts, Over $5 Million Staked Within Hours
After years of anticipation and postponement, staking on Ethereum has finally gone live. And from the look of it, the ETH community was eagerly waiting for it.
Ethereum is on a journey to shift from the power-intensive Proof of Work (PoW) consensus mechanism to Proof of Stake (PoS). The journey has officially begun with the launch of a deposit contract. Released on Wednesday 4, the contract allows Ethereum (ETH) validators to deposit their coins in the contract. However, it’s not until December 1, when Ethereum will officially transition to the Eth 2.0 phase 0.
What to do Between Now and Dec 1
For the contract to launch, it must accumulate a minimum of 524,288 ETH coins valued at roughly $200 million. Notably, instead of ETH validators conducting bulk deposits, the contract allows single deposits of 32 ETH. Therefore, to reach the total ETH needed to fuel the ETH 2.0 phase 0 rocket, 16384 deposits are required.
These deposits must be accumulated seven days prior to the launch. Failure to reach this target, the launch will be pushed forward by a week. Note that the contract’s activation will shift the weight of staking on Ethereum to the Beacon chain, which is the heart of Eth 2.0. It’s not until the genesis event has successfully taken place that stakers will start being incentivized to participate in securing the Ethereum network. Annual staking rewards are estimated at between 8 and 15 percent.
Over $5 Million in, Less Than 195 remaining
With approximately one month to the genesis event, the contract received ETH deposits worth one million US dollars in the first 30 minutes of its launch. Eight hours into its existence, the contract had locked an additional 4.5 million US dollars emanating from slightly over 14,000 ETH coins. The total ETH-locked within this time is worth approximately 5.5 million US dollars. At the time of writing, the amount had increased to 14,629 ETH, according to Eth 2 Launchpad.
Although not yet completely achieved, the possibility of staking on Ethereum has been a long road for Vitalitk Buterin, Ethereum’s founder, and his team. Since shifting from a PoW to a PoS is a complex undertaking, the team has driven towards the change through a series of calculated upgrades to the ETH-powered decentralized platform.
Similarly, Eth2.0 will be activated in phases, with each bringing a unique dimension to the new Ethereum ecosystem. The network is currently in the deposit contract launch, which will closely be followed by Eth2.0 phases 0, 1, and 2.