The deposit contract for Ethereum 2.zero quantities to USD 22.5 million one week after launch
After the deposit contract for the Ethereum 2.0 upgrade went online last week, it is now over 50,000 ETH – 10% of the threshold required to activate the watershed update.
This deposit agreement is the cornerstone of the Ethereum 2.0 update 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 (people who process transactions like miners in PoW), an Ethereum user must have at least 32 ETH. Currently 52,801 ETH with a value of 23.8 million USD are included in the deposit agreement. At least 524,288 ETH will be split between 16,384 stakers to trigger the "Genesis event" of Eth 2.0 and activate the upgrade.
Once Ethereum 2.0 goes online, these validators will earn block rewards on the new network at an estimated rate of 8-15% per year – a lucrative return that is a necessary sweetener for a potentially risky upgrade.
A few days after the contract went into effect, Ethereum inventor Vitalik Buterin sent 3,200 ETH worth around $ 1.4 million to the contract to request 100 validators. As soon as the 16,384 validation threshold is reached, the central nervous system of the new network, the beacon chain, is put into operation.
Ethereum developers estimate that the beacon chain will go live sometime in December. When activated, the migration will move to the second of four phases required to complete the Eth 2.0 upgrade.