Ethereum 2.0 Deposits Surpass 700,000 ETH

There are now more than 700,000 eth, worth more than $400 million, waiting to stake on the new ethereum 2.0 blockchain.

A considerable 260,000 eth was deposited just yesterday, with 200,000 eth sent the day before, making it nearly half a million eth in just two days.

That indicates significant appetite for staking where rewards are expected to start off at about 20%.

They then gradually fall, but even at 10 million eth, stakers are rewarded 10% a year for validating.

That translates to about one million eth a year, with this sum expected to be perpetual as matters stand.

These rewards however won’t be spendable for at least two years until the current Proof of Work ethereum blockchain fully upgrades to the new Proof of Stake blockchain.

Meaning for about two years at least there’s only a reduction of circulating supply, with this ◊700,000 taking up months of mining rewards.

Once they’re unlocked, then the circa ◊5 million a year given to miners will be removed, with new supply increasing by only about ◊1 million, making it an 80% reduction in inflation.

The economics therefore should work in favor of holders, with it to be seen now just how much eth will be staking on or around December the first.

That’s when the genesis block will launch, with ethereans able to stake continuously and in perpetuity for the foreseeable future.

The locked sum thus should gradually increase, with that one million of course being a big number as it’s 1% of the total supply.

Services like Coinbase, in addition, have not yet began offering staking services, presumably because they’re busy keeping up their exchange during times of much demand and maybe because they want to see this running first.

Once these more convenient platforms provide staking, then the deposited sum might increase further, with it possible it eventually reaches ◊10 million as entities like the Ethereum Foundation have not yet deposited.