- With the Eth2 Validator Launchpad, the Ethereum Foundation has released a tool that will make staking much easier and allow users to earn rewards.
- The tool will be launched together with the Medalla testnet and will later be integrated in the ETH2 mainnet.
Ethereum 2.0 continues to make big steps towards the launch. After it was recently announced that Medalla, the final multi-client testnet before the launch of Ethereum 2.0, will start phase 0 on August 4th, the Ethereum Foundation has now announced the Eth2 Validator Launchpad.
We are excited to announce our collaboration in building the #eth2launchpad with @ethereum. This marks the entry point for validators to commence their journey on the #Eth2 chain. https://t.co/5bP4YVvZ9H pic.twitter.com/510SQvtQgL
— ConsenSys (@Consensys) July 27, 2020
In today’s announcement it was stated that the primary goal of the launchpad is to support validators in training in all aspects of the process and to make it as easy as possible to become an ETH 2.0 validator. Via Twitter, Ethereum co-founder and ConsenSys founder Joseph Lubin commented:
The #Medalla Eth2.0 testnet is coming. This is the next big step toward launching Phase 0, so get your testnet ETH ready. The #Eth2Launchpad, a collaboration between Codefi and @ethereum, is designed for easier onboarding to become a validator and stake on the beacon chain.
When Ethereum 2.0 is released, at least 32 ETH are required to participate in staking. While the largest crypto exchanges are expected to do this on behalf of their users, thus removing the 32 ETH barrier, this has some drawbacks. For example, Binance and Coinbase offer a staking service for numerous proof of stake coins, such as Tezos or Cosmos.
However, this requires the private keys to be handed in or other services are subject to a fee. The Launchpad solves both problems by offering a free and simple service that allows ETH owners to keep their private key for themselves. Nevertheless, the Ethereum Foundation stated:
This responsibility brings with it an inescapable tradeoff between ease-of-use, security, and education.
For this reason, the Ethereum Foundation explicitly points out the risks on the new website. Potential validators have to go through 10 steps to prove that they know what it means to be a validator in the ETH2.0 network and what it means to manage their own keys, and that the stunted ETH are inaccessible for some time.
As can be seen on the website, the launch of Medalla requires a starting threshold of 524,288 Görli-Ethereum (GöETH) and 16,384 validators to be overcome, with 217,568 ETH staked at the time of writing. Lighthouse, Nimbus, Prysm and Teku are available at first as clients for the Medalla testnet.
Validators will be rewarded for proposing and attesting blocks. The rewards are linked to the total number of GöETHs staked in the network. As the chart below shows, the maximum reward is 21.6% (annual percentage) when 524,288 ETH are staked. As the amount of ETH staked increases, the reward decreases. However, at 3 million GöETH, the reward is still 9%.
As we recently reported, there has been increasing criticism of a possible further delay in the launch of Ethereum 2.0. However, Vitalik Buterin subsequently put his foot down and numerous core developers joined in that a further delay is not acceptable. As Buterin also explained, the Medalla testnet has run for at least three months without major problems in order to prove itself. This in turn could mean that phase 0 of Ethereum 2.0 will be launched as early as November 4.