[ad_1]
After going into effect last week, the deposit agreement for the Ethereum 2.0 update now holds over 50k ETH, 10% of the threshold needed to activate the watershed update.
This depository agreement is the cornerstone of the Ethereum 2.0 upgrade and serves as a bridge for the migration of the Ethereum network from proof-of-work (PoW) to a new technical infrastructure that supports proof-of-stake (PoS).
To become a transaction validator on the new network (those people who process transactions like PoW miners), an Ethereum user must stake at least 32 ETH. There are currently 52,801 ETH stuck in the deposit agreement worth $ 23.8 million, and it will be necessary to split at least 524,288 ETH among 16,384 stakers to activate the Eth 2.0 “genesis event” and activate the update.
Once Ethereum 2.0 is up and running, these validators will begin earning bulk rewards on the new network at an estimated rate of 8-15% per year, a lucrative return that is a necessary sweetener for what can be considered a risky upgrade. .
A few days after the contract was published, Ethereum creator Vitalik Buterin sent 3,200 ETH worth approximately $ 1.4 million to the contract to request 100 validators. Once the threshold of 16,384 validators is reached, the central nervous system of the new network, the Beacon chain, will be active.
Ethereum developers estimate that the Beacon chain will go live in December. If and when activated, the migration will proceed to the second of the four steps required to complete the Eth 2.0 update.
