Posted 2 weeks ago | Catoshi Nakamoto
Coinbase has announced that it will offer staking services for Ethereum 2.0, allowing customers to earn 75% of the rewards.
Coinbase announced the waitlist for Ethereum 2.0, staking in a blogpost.
“By joining the waitlist today, customers will be first in line to earn ETH2 staking rewards,” said Coinbase’s senior product manager for retail, Rhea Kaw, in a blog post today. “The ability to earn rewards, simply by holding cryptocurrencies, is made possible only with crypto-based financial services.”
Coinbase customers can now sign up to stake their ETH into the Beacon Chain smart contract and receive back 7.5% APR.
Coinbase says it will take a 2.5% commission or 25% of the overall Ethereum 2.0 staking rewards in exchange for the service. The deposit contract for the Ethereum 2.0 Beacon Chain now holds over 3,000,000 ETH, worth over $6 billion at current prices, according to data from Etherscan. Etherescan indicates there is a total of 3,156,130.00 ETH locked in the contract at the time of this report.
The ETH Beacon Chain contract launched at the beginning of November, and within three weeks, it had secured the necessary threshold of ETH to lock in the Beacon Chain’s launch, which took place in the first week of December.
The Beacon Chain is a bridged network between the current Ethereum network and Ethereum 2.0; when the time comes, the Beacon Chain will help migrate the current mainnet onto 2.0 to ensure the network’s migration without issue.
Unlike the current Ethereum blockchain, Ethereum 2.0 uses proof-of-stake where “validators” replace miners to process transactions on the chain rewarding stakers. Initially, Coinbase customers will not be able to sell or send the portion of their Ether that they choose to stake. However, Coinbase is exploring ways to give customers a way to trade their staked ETH very soon, according to the announcement.
As more ETH is deposited into the Beacon contract, the reward distributed to validators will decrease. At the current amount a little above 3 million ETH, users will earn 10%. If the number of staked ETH goes to 8 million, the rewards will fall down to 5.88%.
Ethereum’s fundamentals are more bullish than ever, but once again, price manipulation is holding back the cryptocurrency from surging to new levels. Watch Bitboy Crypto in the video below, explain what’s going on with Ethereum’s price and how institutional investment firms and our ever going nemesis F2Pool are likely behind the price suppression of Ethereum.
Ethereum is currently trading at [FIAT: $1,916.99] UP +5.1% in the last 24 hours, according to Coingecko at the time of this report.