ETH 2.0, over 600 thousand ETH on the deposit contract

Surprisingly, with an unprecedented upsurge, so much so that at first it was doubtful that it would be done in time for the date of December 1, the deposit contract to start ETH 2.0, has reached its first objective, namely to have 524288 ETHs staked.

The Ethereums on the ETH 2.0 deposit contract

As we can see from the data, the ETHs staked in the ETH 2.0 programme have reached and surpassed that threshold and have reached 601568 ETHs deposited in the contract. Remember that as many as 32 ETHs had to be deposited in order to become a validator of the new Ethereum network.

In fact, before the launch of ETH 2.0. it was necessary to have a substantial amount of Ethereum in the relevant smart contract in order to create a user base and nodes large enough to support the entire future network.

Incentives and disincentives of Ethereum 2.0.

Let’s not forget that who becomes validator of the new network is subject to be evaluated by special performance algorithms and if the validator falls below a certain threshold slashing is activated, i.e. part or all of the staked quota is taken from him as if it were a „compensation“ for the work not done.

Staking can be done through dedicated pools. Doing it obviously brings advantages, which in this case is a reward for the validation of the blocks.

We are talking about an APR variable and inversely proportional to the Ethereum staked: at a higher amount of Binbot staked, the APR decreases, which starts from about 20% and then slowly arrives close to 0, also because the whole supply of Ethereum already exceeds 100 million and therefore if all staked the APR would become null and void.

The Beacon Chain of Ethereum

Finally, we remind you that from December 1st the Beacon chain network will be activated, which is the one on which validators and nodes will operate.

This obviously does not mean that what was on Ethereum will magically pass immediately to the new chain, on the contrary a migration process will have to be started to bring the various protocols and smart contracts to the new network. This will have a significant cost for both the team and the user, as they will have to manually migrate funds from one smart contract to another.

Once in, the advantage is that you get more speed and lower fee cost.

However, there is still the problem of pools, because if with a PoW (Proof of Work) system mining pools were concentrated in the hands of a few mining farms, in this case there would be more massive pools than others.