About Ethereum 2.0
Ethereum 2.0 is a decentralized world computer. The market cap is $141,384,668,646 and the 24h volume is $30,978,169,083.
Staking Ethereum 2.0
Ethereum 2.0 blockchain consensus is achieved via Casper. Investors can leverage their crypto via staking. Currently there are 4 options to earn passive income and staking rewards with your Ethereum 2.0 investment as outlined below.
Run a Validator
- How to migrate to Ethereum 2.0 ?
Users on the Ethereum 1.0 Chain will be able to lock up their Ether in a smart contract and will then be credited that same amount on the Beacon (Staking) Chain in Ethereum 2.0.
At that point they will be able to stake that Ether and begin to earn rewards directly on the Ethereum 2.0 Chain.
- What are the minimum requirements to stake?
- A minimum of 32 ETH per validator
- Computer with sufficient hardware specs
- Internet connection
- What software do I need to run to stake?
There are two main types of software to be aware of when considering staking on Ethereum:
Beacon nodes: This is the hub for your validators.
- Stores canonical state, handles peers and incoming sync, propagates blocks and attestations.
- Has a gRPC server that clients can connect to and provides a public API.
Validator clients: Talks to your beacon node and signs blocks. You can have multiple of these at 32 ETH each.
- Stores important secrets such as RANDAO reveal, proof of custody for shared data, and BLS private key.
- Can swap underlying beacon nodes efficiently.
- Tracks shared state execution data and data blobs that the validator has signed.
This means that there are three possible combinations of software to run:
- 1. Beacon node only
- 2. Beacon node + validator client
- 3. Beacon node + multiple validator clients
- How long is my Ether locked up if I stake?
There is a withdraw queue that you are placed into when wanting to withdraw ETH from your validator. If there is no queue, then the minimum withdraw time is 18 hours and adjusts dynamically depending on how many people are withdrawing at that time.
- Is there a risk to stake ETH?
The key to being a validator is to ensure that you are consistently available to vote for blocks which in turn secures the network.
Therefore, there is a slight penalty if your validator client goes offline at any point, in order to encourage validator availability.
There are two scenarios where this can happen:
- 1. If blocks are finalizing and you’re offline, you can lose x% of your deposit over a year where x=current_interest
- 2. For example, if the current interest rate is 5%, you would lose 0.0137% of your deposit every day, but gain that for every day you’re online.
- 3. If blocks aren’t finalizing (>33% of validators are offline) and you’re offline, you can lose 60% in 18 days.
If at any point your deposit drops below 16 ETH you will be removed from the validator set entirely.
- How much can i earn when staking Ethereum 2.0 (ETH)?
The inflation is a sliding scale based on the Total Staked. So if total ETH stake is low, the issuance rate goes down and as stake rises, it starts to rise.
The total inflation issuance is then proportionally distributed between all stakers.
ETH validating Max annual issuance Max annual network inflation % Max annual reward rate (for validators) 1,000,000 181,019 0.17% 18.10% 3,000,000 313,534 0.30% 10.45% 10,000,000 572,433 0.54% 5.72% 30,000,000 991,483 0.94% 3.30% 100,000,000 1,810,193 1.71% 1.81%
Additionally stakers receive a proportional share of the Daily Network Rewards (Transaction Fees).
Feel free to play with the above metrics in our Ethereum 2.0 Staking Calculator.