The Ethereum 2.0 Deposit Contract is Nearly 50% Staked

in #hive-1679222 days ago

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We're closer than ever before to the Ethereum 2.0 mainnet launch. The Ethereum 2.0 deposit contract recently surpassed 200k ETH, putting it at 41% of the necessary eth deposits to launch mainnet.

While many watch the total ETH being staked in this contract to get a sense of when the genesis event will occur and the network upgrade takes place, many others are already wondering what their staking APR will be once the deposit contract launch is complete and the Ethereum ecosystem sees a new era of scalability.

Proof of Work got the Ethereum network this far, but Proof of Stake (PoS) is what will take DeFi, Ethereum and the tokenization of everything to the next level.
What is the ETH2 Deposit Contract?

If you're not familiar with ETH 2.0, then a quick description might serve you well: Ethereum is a smart contract ecosystem that benefits upon other applications and communities leveraging flexible blockchain technology in order to service the existing Ethereum community and the crypto space at large.

While Ethereum is easily one of the most utilized blockchains in the world, many point fingers and show proof of its lack of scalability and user-friendliness. Much of these issues lie at the core of the Ethereum blockchain itself.

ETH2 is slated to fix all of that with major implementations and innovations like shard chains (fractional blockchains within a blockchain), proof of stake and other essential network upgrades.

On November 4th, 2020 the Ethereum 2.0 deposit contract was launched. This contract is one of the first key steps in officially launching the Ethereum network upgrade that "could change it all".

Many sites have started tracking this contract address. Many even try to extrapolate a launch date for ETH2 by taking this contract address and tracking the total eth being deposited to it on a regular basis. Whether ETH2 launches December 1st or January 1st is somewhat irrelevant to me.

What I'm keeping an eye on is the developer attention around this. As Ethereum developers respond to the eth2 deposit contract, other smart contract and upgrade activity will take place surrounding this event.

You can track the total ETH and other important info regarding the ETH2 deposit contract on https://launchpad.ethereum.org/.

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Why Would Anyone Stake ETH?

There are a number of reasons to stake ETH and become a network validator. One of the most obvious is the staking reward that comes along with being validator.

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As we see this ETH2 deposit contract fill up with the necessary ETH, we get closer and closer to the mainnet launch.

Another interesting thing to keep an eye on is the simultaneous bull market that crypto is entering more broadly.

There is a lot of attention right now on the Bitcoin price and a ton of people are flooding into the crypto space.

With all of these new investors (and also old investors getting wealthy), there will be an increased level of attention on the reward economy. For Ethereum, yield farming has already played a major role in the ecosystem.

ETH staking will provide a safe alternative to yield farming but at lower yields. In my opinion, this will drive a lot of people to become network validators so that they can earn a "safe" return, but it will also seed the idea of yield in the minds of many others.

Personally, I think one of the most bullish things about this whole "new network", scalability approach and staking reward economy is the increased focus on the idea around earning yield on your crypto assets.

The crypto economy is rapidly expanding and in my opinion, this launch is going to be one of the major catalysts for an explosion in the ETH price in 2021. The Bitcoin price is fun to watch, but ETH2 is going to blow peoples' minds as the tokenization of everything sets in and we seek a new wave of bullish developer activity.

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Is there anyway we can participate with less than 32 ETHEREUM?

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Yes, there are services.

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I would love to know some of them.

I think it is worth staking ETH for a decent staking reward. Sooner or later, ETH will integrate PoS into its mechanism to be able to solve a couple of problems that are faced in blockchain. I believe that this PoS shift will bring new discussions in the crypto ecosystem over the utility of PoS against PoW ^^

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The Bitcoin price is fun to watch, but ETH2 is going to blow peoples' minds as the tokenization of everything sets in and we seek a new wave of bullish developer activity.

Don't forget that the LEO price will go up with the ETH price surfing new highs!
Really exciting times ahead!

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Thanks for the good explanation. The Eth stacking period is something like 1 year, right?

I want to see Hive tokenized the web, not Eth ;)

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Ethereum 2.0 is a great development anda lot of us are anticipating its launch but I do hope it solves the issue of scalability and high gas fees.

In the short term its locking 250 million dollar eth. This is increasing current gas fee.
PoS is scaling better since the blocks creation is much much less consuming. But the need to run smart contracts on the EVM will not change. I think (maybe I am wrong) that gas fees will only go up but performance will be much better.

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Do you know how much percentage HIVE Staked ?

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About 140 million HIVE is powered up.

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That's 32% of the current supply, I want to see more than 50% of the supply staked by end of next year.

We need to reduce Power down period to 4 weeks sooner than later

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1-2 weeks are even better. Why 2 weeks if gov votes already delayed to 1 month?

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We gotta sort this power down thing pretty soon and focus on usecases that you mentioned on Twitter.

More usecases for #Hive Token.
Some ideas i like:
-Smts, Advertisement , reduced Inflation (Hive as Gov/Gas Token), Prefix walletnames to make them cheaper, Rc Delegations, Onboarding Rewards, Talk again about onchain smart contracts.

Agree :)

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This is a big step towards transformation into something better and being technologically possible to extend and improve the network beyond current capabilities. Migration from Ethereum 1.0 to 2.0 is quite ingenious on its own considering that it is not a hard fork and allows developing a network on top of another working until it fully translates to the new model. This shows how well built it is and how many possibilities it offers to adapt.

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I'm pretty excited for ETH 2.0, but mostly for the cheaper transaction fees. Most people won't have enough ETH to benefit from staking, but for sure it would serve a benefit to businesses and project investors.

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The question is, why would smart money stake right now?

2 points:

  1. The most adept stakers will be getting yield on their ETH in other places right up until the 1st day of the ETH 2 launch.

  2. Risk. Locking your eth into a contract weeks before it starts earning a yield is stupid.

Conclusion:

The required ETH will start filling up fast very fast at the last moment before the launch.

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!BEER

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Hey @khaleelkazi, here is a little bit of BEER from @pouchon for you. Enjoy it!

Learn how to earn FREE BEER each day by staking your BEER.

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Better late than never. Ethereum can afford to be late as they were the first to the market and has the largest pool of experienced DAPP developers on their platform. It would be interesting to see how projects like EOS handle these new improvements of Ethereum. EOS and many others are in dire need of DAPPs more than anything.

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I have a dumb ass question - there's no new token being created here, it's the same ETH supply isn't it, 2.0 is just a term referring to a network upgrade?

So like a fork of Hive, when the new 2.0 mainnet launches the same token 'ETH' will be used and they'll be just as much of it after as there was before the launch?

Is that right?!?

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When more people stake eth, the demand will increase then it causes the price rise too. will eth jump on the peak ?

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This is a great step in the right direction, is it expected that fees decrease while interaction on the blockchain increase. I hope a lot of new kinds of projects, games, and more bring value to the ecosystem and generate new ways of income for us.

I'm very enthusiastic about the 2.0 version, I cannot wait to stake my ETH on it!

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Really exciting times ahead! Need to stack some ETH and Leo while it's still comparatively easy.

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Hopefully this Ethereum 2.0 will change the hot problem right now is Fee Gaz. Sometimes I can't even trade because Gaz is too tall. And now for swap on Uniswap, the Gaz fee is always close to $ 10 per transaction 🙄😒

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I've red somewhere that there's a possibility to take part in staking for smaller investors by joining pools. Do you know any trustworthy?

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it's kinda sad to see that an un-audited DeFi smartcontract can ammass $500m in less than 24h and ETH2 contract is struggeling to reach the goal til December

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