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September 22, 2020
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How much can you earn “stakando” Ethereum 2.0?

See how the rewards will be delivered to whoever “stakar” Ethereum 2.0 – when it is released.

“What kind of economic return do stakers can they expect to get? ” This was probably the most anticipated question during today’s “Ethereum 2.0 Staking Panel” at Ethereal Virtual Summit 2020 – at least from the perspective of retail investors. The answer, however, is far from simple, according to Collin Myers, global strategy producer at ConsenSys.

Ethereum 2.0 is a massive update to the network that will bring many improvements to the current blockchain. Among other things, it will pave the way for Ethereum to become an algorithm for proof-of-stake (PoS), moving away from the current algorithm proof-of-work (PoW).

The main difference is that, in PoS, users will be able to stakar, basically “holdar”, their Ethereum, which will be used to check new blocks, consequently helping to support the network. Obviously, participants will receive rewards for their contributions, and the greater their participation in the ecosystem – the greater the reward.

Myers said the Ethereum 2.0 network must reach some important milestones before ETH holders can start asking themselves about stakar. First, the first 2.0 block – or “genesis” – will not be discovered until it obtains about 16,000 validators.

“No one will receive rewards until that point is reached,” added Myers.

He also noted that the “zero phase” is continuous and not a defined period of time, although developers expect it to last between 12 and 18 months – or even 24 months, according to some projections. The next major milestone is the five million ETH stakados – when the “first phase” is likely to begin, Myers added.

What profit should the first stakers receive?

“From the perspective of the network level, in genesis it is 20.3% and, with five million ETH stakados, it drops to 6.6% – and this without costs embedded in its structure. There are a variety of different configurations that people can choose from. We are mainly focused on the individual approach “at home” “, said Myers.

He explained that, from the genesis block, the maintenance costs of a validator node will cost users 4.75% of their rewards. As more Ethereum is staked on the network, this percentage will increase, as the rewards themselves will start to decrease.

“With five million ETH stakados, the cost will increase to around 14.7%,” said Myers.

Myers also warned all potential stakeholders that the Ethereum 2.0 network was designed to be “highly open”, which results in a variable rate of return. While rewards should not be seen as volatile, they still vary, as “anyone can get in and out” of the system.

Source: Decrypt

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