Over a million Ethers (ETH), worth $ 605 million, have already been put into play as part of the Ethereum 2.0 deposit agreement
1 million of ETH and strike
The long-awaited upgrade to Ethereum 2.0 gained momentum as expected Tuesday 1 st December at 13 am. The launch concludes the opening act, or “phase 0” of Ethereum 2.0. The stake of Ether (ETH) is part of the phased evolution of the Ethereum blockchain towards a proof-of-stake (PoS) protocol, moving away from its current proof-of-stake design. of-Work (PoW).
And even after the successful launch, the Ethereum 2.0 deposit contract continues to attract funds. The contract has now racked up more than 1 million ETH worth over $ 605 million . We can see the evolution over time of deposits:
Risks associated with staking
The rewards for early depositors are relatively high, around 15% per year . However, the rewards will decrease as more validators join the network.
Participants will not be able to withdraw their ETH until the current Ethereum mainnet has „merged“ with this new blockchain, a process that could take several years . It is also important to keep in mind that validators may be penalized if their node’s operation is interrupted .
Some exchanges such as Coinbase are already preparing the possibility of hosting Eth2 staking on their platform. But this alternative will not be without risk as well. In November, an Amazon Web Services outage affected thousands of websites, including that of the US exchange. Such an event would also have harmed Ethereum 2.0 node operators.
So even when choosing an external provider, it is important to understand the risks associated with such an activity.