August 5, 2021

Vitalik Buterin spoke about the benefits of early staking …

Vitalik Buterin spoke about the advantages of Ethereum 2.0 early staking

Over 54,000 ETH was deposited to the Ethereum 2.0 deposit contract a week after its official release. In order for the launch of the zero phase of the project to take place according to the plan on December 1, future stakers must send another 470,000 ETH in 3 weeks. Ethereum co-founder Vitalik Buterin believes users may underestimate the benefits of early participation as a validator.

On Twitter, he recalled that the penalties for the first months of Ethereum 2.0’s existence were reduced relative to the values ​​used in the Medalla testnet, from 1/3 to 1/4. In addition, subject to the minimum deposit threshold of 524,288 ETH, the annual return on Ethereum 2.0 staking will be around 25%.

“So even if you are somehow penalized within the first three weeks after joining, staking will probably still be profitable for you,” he wrote..

Vitalik Buterin spoke about the benefits of Ethereum 2.0 early stakingOver 54,000 ETH was deposited ...

Vitalik Buterin spoke about the benefits of Ethereum 2.0 early stakingOver 54,000 ETH was deposited ...

Buterin noted that users should not be afraid of fines if they do not take any malicious actions. However, he admitted that such a possibility remains if a serious bug occurs in the network. “Apparently, there are people who are worried about serious bugs,” he added..

Vitalik Buterin spoke about the benefits of Ethereum 2.0 early stakingOver 54,000 ETH was deposited ...

A similar situation occurred in Medalla, when due to a bug, the network did not reach completion for a long time. As a result, validators were fined, many of whom were never able to return to the initial deposit of 32 test ETH by disconnecting their nodes..

According to Buterin’s expectations, in order to raise the fines to the originally planned level, the network must work steadily for 4-6 months. “This will essentially be the equivalent of the Homestead fork on the Eth1 network, which happened 7 months after launch,” he said..

“Given the slow acceleration, early investors can be expected to make huge profits,” Cinneamhain Ventures partner Edam Cochran previously wrote..

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