The ETH 2.0 deposit contract exceeded 10% of the total supply and over 12.3 million are in the beacon chain contract awaiting the full upgrade later this year. So let’s read more of the latest Ethereum news today.
In anticipation of Ethereum’s Proof of Stake upgrade, over 10% of the supply of ETH has been sent into the 2.0 deposit contract, which is worth over $35 billion at current prices and is generating around 12,334,098 ETH in revenue, according to Etherscan about the contract At the time of writing and by comparison, the total supply is estimated at around 120,642,170 ETH. The smart contract involved staking ETH onto the Beacon Chain, and the chain will merge with ETH to act as a coordination mechanism and allow it to work with Proof of Stake.
Proof-of-Stake is a consensus model that allows users to construct blocks by staking their crypto holdings, allowing them to choose to create a block rather than expend energy as a staker receives a block subsidy, which allows users to get the effective yield. The contract’s holdings make the network the second largest in terms of value staked, right next to Solana, so it appears to be growing rapidly, having surpassed 10 million ETH in March. Despite this, the return on investment is low compared to other networks at 4.3% versus Solana’s 5.41% and Terra’s 5.96%.
Ethereum 2.0 was supposed to launch in July this year, but the developer confirmed that users will have to wait longer, so the upgrade has been delayed several times over the years Stand by the PoW model and insist that PoS is insecure and centralized is.
As recently reported, Ethereum, the world’s largest smart contract platform, has been plagued by high transaction costs and the developers tried to tackle the problem via the Layer 2 solutions that help to scale applications by facilitating the transactions of the ETH Mainnet while maintaining the same level of security and decentralization. While transaction fees are lower on most Layer 2 networks compared to the ETH mainnet, Vitalik Buterin reckons they need to be under five cents to be acceptable. Ethereum’s Layer 2 fees need to be lower, and Buterin proposed improvements to the network that should allow the network to scale in the short term.
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