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ETH 2.0:  Staking on Ethereum Is About to Get More Lucrative. Here’s Why.

ETH 2.0: Staking on Ethereum Is About to Get More Lucrative. Here’s Why.

FromCoinDesk Reports


ETH 2.0: Staking on Ethereum Is About to Get More Lucrative. Here’s Why.

FromCoinDesk Reports

ratings:
Length:
30 minutes
Released:
May 6, 2021
Format:
Podcast episode

Description

In this week’s episode, CoinDesk’s Christine Kim and Consensys’ Ben Edgington discuss the future of validator rewards post-merge to proof-of-stake (PoS) and the significance of the Steklo test network launch. This episode is sponsored by hellointerpop.io and The Sun Exchange.Currently, if you’re staking on Ethereum 2.0, Ethereum’s parallel PoS network, your operations are earning you a roughly 8% annual percentage return (APR). But once Ethereum and Ethereum 2.0 merge, validators stand to earn more than triple this amount. “It looks like around 25% per annum is the expected initial total annual return for [validators]. So on your 32 ether, you’ll be earning about eight ether per year, on average,” said Edgington. The reason why is because a merge to Eth 2.0 will mean all transactions and smart-contract operations on Ethereum are processed by validators instead of Ethereum miners. This means validators will begin earning extra rewards from users and decentralized applications (dapps) in the form of transaction fees. Prominent Ethereum community members such as Ethereum Foundation’s Tim Beiko and Trenton Van Epps have cautioned miners about planning operations beyond the end of 2021. “To all Ethereum miners: Plan conservatively for an end to mining EOY 2021,” said Van Epps in a tweet. Testing is ongoing for Ethereum’s merge to PoS. Last Friday, April 30, developers launched the first multi-client test network for this upgrade, dubbed “Steklo.” Steklo “was only up for a day. That was pre-planned. It wasn’t supposed to be a test network that would be up and running for weeks a time,” said Kim. For the few hours it was functional, Steklo faced a number of issues and errors. For the complete commentary on the troubles the network faced and what developers learned from their first major attempt at modelling the merge of Ethereum and Eth 2.0, listen to the full podcast episode with Edgington and Kim. Links mentioned in this podcast: What’s New In Eth2 (www.eth2.news)   Valid Points (https://www.coindesk.com/newsletter/valid-points)   -InterPop is redefining the future of NFTs and fandom. Learn more at interpop.io.-The Sun Exchange is offering CoinDesk Reports listeners a free solar cell with your first purchase and automatically lease them to power businesses in sunny, emerging markets.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Released:
May 6, 2021
Format:
Podcast episode

Titles in the series (100)

Podcasts featuring news, illuminating discussion and insightful commentary from the editorial team at CoinDesk.com.