Ethereum 2.0: Vitalik Buterin sends $1.4M to prepare launch and staking

  • Ethereum’s inventor, Vitalik Buterin, sends $1.4 million or 3200 ETH in 100 transactions to Eth2’s deposit contract.
  • Buterin seeks to build trust in users to reach a goal of 524,288 ETHs locked in to launch Eth2.

Ethereum is in a bullish moment. On November 4, the Ethereum Foundation confirmed the launch of the Ethereum 2.0 deposit contract. They also set December 1 as the tentative date for the deployment of the Beacon Chain. The inventor of Ethereum Vitalik Buterin has supported the initial stage of the phase 0 of Ethereum 2.0.

Since the launch of the deposit contract, investors can participate by paying 32 Ether (ETH) sending the funds to the deposit contract’s address. A total of at least 16,384 deposits or 524,288 ETH are required almost $200 million until the deployment of the Beacon Chain.

Buterin has been one of the most important contributors so far. The inventor of Ethereum has shown his confidence in the project by making a deposit of 3200 ETH for over $1.4 million divided into 100 transactions of 32 ETH each. Buterin still retains about $2.5 million in the address from which he sent the funds and $1 million in other assets based on Ethereum.

It is speculated that Buterin’s transactions are part of a strategy to build investor confidence and encourage investors to stake the amount of ETH required. As part of the deployment of the Beacon Chain, investors must leave the funds locked up for two years. Some users have expressed concern, therefore, Buterin send message of confidence. At the same time, Ethereum’s inventor has made a publication in which he explores the advantages of the consensus protocol of Ethereum 2.0., Proof-of-Stake over Bitcoin‘s consensus protocol, Proof-of-Work.

Among the advantages mentioned by Buterin are energy savings and the lack of specialized equipment to receive rewards for staking. Because of this, more users are expected to participate in the network. However, one user pointed out that with phase 0 of ETH2 users must maintain 100% uptime of their funds for the entire 2 years. Buterin said:

No one is expected to maintain 100% uptime. You can be profitable with only 60% uptime. In case you are afraid to gamble because you are worried that your computer will go offline for a day: The reward/penalty rules have been designed to be quite forgiving.

18 million to Ethereum 2.0 deposit contract

At the time of publication, the deposit contract has an estimated 40,165 ETH of $18,656,250, about 10% of the required amount to deploy the Beacon Chain in December. The question remains as to whether the goal will be achieved by the tentative date.

Experts like Adam Cochran have stated that the launch of Eth 2.0 will cause a supply shock in the market. Therefore, there will be a positive impact on the price of ETH. However, it is also necessary that about 13% of ETH’s circulating supply be staked to reach the current level of security that Ethereum has with the PoW protocol.

In the community, a possible increase in the centralization of the network is also a concern for users. In conjunction with the uncertainty due to the volatility in the price of ETH and the risk associated with losing a large amount of money. In that sense, the developers of the Ethereum Core have reiterated on several occasions that investors must make sure they send the funds to the right address.

About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

Comments are closed.