The Ethereum ecosystem has been gaining immense popularity in the last few years. This blockchain platform hosts a variety of DeFi projects and NFTs, while its native coin, ETH, remains the second largest cryptocurrency by market capitalization. Ethereum Foundation, the non-profit organization that supports this system, continuously attempts to improve the Ethereum network, making it more scalable, sustainable, and secure.
One of the most significant changes that Ethereum is undergoing now is the introduction of Ethereum 2.0, which implies a switch from the Proof-of-Work (PoW) to the Proof-of-Stake (PoS) protocol. This upgrade is aimed at solving the problem of fast-growing transaction costs (aka gas costs) and colossal energy consumption by shifting from mining to a staking mechanism. In this article, we will dive deeper into Ethereum 2.0, outline its key features, and provide you with all the important details on how to stake Ethereum (ETH).
Ethereum 2.0 (also called Serenity or ETH2) is a number of updates planned by the Ethereum Foundation which are going to result in the ETH network moving from the PoW to PoS consensus protocol. The primary goal of this major network improvement is to solve the issues of scalability, high transaction fees, and energy consumption that have been plaguing Ethereum (ETH) since its inception.
The Ethereum Foundation has been working on these long-awaited upgrades for several years now. The first change happened in 2020 when the Beacon Chain was introduced. It opened the possibility of ETH staking. Another upgrade called “The Merge” is planned to occur in 2022. This step will unite ETH1 (the execution layer) and ETH2 (the consensus layer) into one network. The total shift to the Proof-of-Stake mechanism is expected to finish in 2023 - 2024.
The Proof-of-Work (PoW) consensus algorithm used by the current Ethereum ecosystem implies that miners validate transactions and add new blocks to the blockchain in exchange for rewards paid in ETH. Although this approach has proven to be secure, it has some significant pitfalls.
These issues can be resolved as soon as the Proof-of-Stake mechanism comes out. PoS is a much more efficient and eco-friendly way of validating transactions and adding new blocks to the blockchain. In this approach, instead of mining, there is a staking process in which users stake their Ethereum to validate transactions and earn rewards. As there is no need for expensive hardware or enormous amounts of electricity, PoS is much cheaper and more sustainable than PoW. Moreover, as stakers can validate transactions much faster, Ethereum’s scalability will also improve.
Every ETH holder might wonder why it’s worth staking. Let’s consider the core reasons.
ETH staking implies adding new blocks to the Ethereum blockchain. A user must deposit 32 ETH to become a full validator who is responsible for processing transactions, storing data, and adding blocks. The reward is earned for correctly validated transactions. If a validator submits fraudulent transactions or breaks the network rules, they are punished with a process known as slashing, which means that they could lose part of their investment and be kicked out of the ETH ecosystem.
There are some alternative ways to participate in staking. If a user doesn’t want to get into the details of this reward-earning approach or deal with hardware, they could make use of staking-as-a-service. For users who are limited in capital, there is an option of pooled staking. However, it’s crucial to remember that these techniques come with certain risks, especially related to the counterparty.
In staking, the amount of the reward is variable. It depends on factors such as the total amount of ETH staked, the length of time it is staked for, and the overall inflation rate. For example, if you stake your ETH for a shorter period, you will receive less reward than if you stake it for a longer time. However, as long as you keep your ETH staked, you will continue to receive rewards regularly. Most commonly, users who stake their ETH take a reward of about 8% Annual Percentage Rate (APR). This means that if you stake 1 Ethereum, you will have 1.08 ETH at the end of the year.
When it comes to the fees, everything depends on the platform the staker is using. The amount can greatly vary. For example, Lido takes 10% for ETH staking, Coinbase has a 25% fee, while P2P charges a 10% fee.
As previously mentioned, the amount of money that can be earned from staking Ethereum can vary depending on several factors. The size of the reward is impacted by the amount of ETH that is being staked - the more ETH, the higher the potential reward. Another important factor to take into account is the time the Ethereum is being staked for - a longer period will typically result in more significant profits. In addition, it is also important to consider the current interest rate on Ethereum. The higher it is, the more money can be earned from staking this cryptocurrency. Currently, the average reward from ETH staking fluctuates between 3% - 8% paid annually.
An Ethereum staker gets a reward after each epoch, which usually lasts 6.5 minutes on average. However, it’s important to note that the user should be active during this time to receive it, meaning that they should be online and validating.
To track Ethereum staking rewards, the user needs to find their staking address. It’s possible to do it in two ways:
Overall, the process of tracking your ETH 2.0 staking rewards is relatively simple and can be done using either a blockchain explorer or one of the multiple tools that help to track rewards.
The unstaking or undelegation period is the time users must wait to withdraw their ETH if they want to stop staking. This period is required to ensure that all the rewards that have been earned are properly distributed.
On Ethereum, it is currently not possible to unstake your assets, once they are staked. Withdrawal of staked assets will be enabled in 2023 with the Shanghai upgrade. The unstaking period is variable and depends on how much ETH is queued to be unstaked at the time.
There are a few different ways a user can stake Ethereum. Let’s have a look at them.
Solo staking means that users stake their ETH and do not pool it with others. This approach comes with the maximum reward since it is not shared with other users. For this type of staking, it’s necessary to invest 32 ETH and have a robust computer with a constant internet connection.
This is an easier way for users to participate in staking without having to set up their own validators or run any special software. Instead, they simply deposit their ETH into the provider's smart contract. This model allows for earning rewards without having to bear the full costs and risks of running a validator node. Although Ethereum staking service providers typically charge a small fee, this is often offset by the higher rewards that they offer.
Staking as a service exists in three forms: custodial, semi-custodial, and non-custodial.
Pooled staking is when users pool their Ethereum together to have a better chance of validating blocks and earning rewards. This is a great way for users to earn rewards without having to stake 32 ETH. However, it’s crucial to remember that it’s not a native staking method, and thus it comes with increased third-party risks.
This staking method has gained particular popularity among ETH holders. A centralized exchange is a suitable choice for users who don’t feel comfortable holding Ethereum in their wallets and managing their keys. Although centralized exchanges typically offer higher rewards than other methods of staking, they also come with the risk of losing ETH if the exchange is hacked or becomes insolvent.
P2P provides non-custodial services for Ethereum (ETH) staking. As previously mentioned, this means that users keep full control of their assets and the platform doesn’t have access to their private keys.
P2P is a cutting-edge solution that provides its customers with top-notch security, transparency, and strong community support. When it comes to ETH staking rewards and fees, after The Merge, it offers its users a ~8% APR and charges a 10% validator fee. By staking before The Merge, a 0.1 ETH flat fee is charged for every 32 ETH.
New and existing clients can benefit from a 0% validator fee per quarter when staking more than 320 ETH.
P2P is one of the leading Node Operators at LIDO, running thousands of nodes for almost 2 years. By opting for this ETH staking solution, users receive high-quality service and 24/7 expert account monitoring and support.
If you decide to stake your ETH, it’s important to be aware of the risks related to this approach. Let’s have a look at the most significant ones:
While all these risks are possible, they are also relatively unlikely if you are well aware of the features and limitations of this approach.
Different crypto experts have various expectations about the Ethereum price in the short- and long-term perspective. However, the majority of them agree that the improvements related to Ethereum 2.0 will push this crypto to enter a bullish market.
Coinpedia expects Ethereum to be traded at about $5,000 at the end of 2023. Moreover, if the ETH 2.0 release turns out to be successful, the value of this crypto could hit a maximum of around $11,000 in 2025.
Coin Price forecast also has a positive forecast for the Ethereum price. However, it’s more reserved. This platform believes that ETH will reach the level of about $2,200 by the end of 2022 and will continue growing, approaching $2,800 in 2025.
Ethereum staking could be a great way of gaining extra income. Moreover, this process, in contrast to mining, comes with significantly improved scalability, security, and sustainability. However, before making any decision, it’s crucial to be aware of the risks involved. One of the main issues to take into account is that users will not able to withdraw their staked Ethereum by the time Ethereum 2.0 is completely released.
If you decide that the advantages of this approach outweigh its potential risks, you need to choose among the several possible ways to stake Ethereum and commence your journey.
Ethereum is a decentralized, open-source blockchain featuring smart contract functionality. Its native token, ETH, is the second largest crypto by market cap after Bitcoin. Ethereum is a unique platform that serves as a home for many decentralized applications and NFTs. Currently, the network is undergoing some significant changes which will result in shifting from a Proof-of-Work to a Proof-of-Stake mechanism.
In Ethereum staking, the reward may vary depending on the amount of ETH invested, the time it is staked for, the inflation rate, and more. However, the average Ethereum staking yield is about 5.4%.
Ethereum staking rewards are distributed by stakers every 24 hours. The amount of the rewards depends on the number of ETH tokens staked, the time they are staked for, inflation, and more. However, typically it is around 4% per year.
Unstaking Ethereum or any other crypto means taking these coins out of the staking pool. There is no unstaking period in the Ethereum network, and your tokens will be transferable immediately upon unstaking. Note that once you have unstaked your coins, they are no longer eligible for staking rewards.
Yes, there is such a risk. Slashing is a type of punishment imposed on users who don’t comply with network regulations or submit fraudulent transactions. This could result in a user losing some of their funds or even being kicked out of the network.
In general, there is no minimum amount to stake Ethereum. However, there could be some minimum requirements set by individual staking pools. P2P users don’t have to provide any minimum ETH staking amount.
No, Ethereum staking rewards don't compound; most smart contracts do not allow for compounding rewards. This means that users cannot gain interest on their interest.
The annual Ethereum supply is limited to 18,000,000. This means that its inflation rate has to decrease each year. As a result, in 2022, Ethereum inflation dropped from 1.10% to 0.51% during the first quarter.
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<!--kg-card-begin: markdown--><p>Table of Contents</p> <ul> <li><a href="#T1"><span style=" font-size:16px"> What is Cosmos Hub (ATOM) Staking? </span></a></li> <li><a href="#T2"><span style=" font-size:16px"> Why Stake Cosmos Hub (ATOM) with P2P Validator? </span></a></li> <li><a href="#T3"><span style=" font-size:16px"> Cosmos Hub (ATOM) Staking Rewards & Fees </span></a></li> <li><a href="#T4"><span style=" font-size:16px"> How to Track my Cosmos Hub (ATOM) Staking Rewards </span></a></li> <li><a href="#T5"><span style=" font-size:16px"> Cosmos Hub' (ATOM) Warm-up & Reward Distribution Frequency </span></a></li> <li><a href="#T6"><span style=" font-size:16px"> Re-delegate Cosmos Hub (ATOM) </span></a></li> <li><a href="#T7"><span style=" font-size:16px"> Cosmos Hub (ATOM) Undelegation period </span></a></li> <li><a href="#T8"><span style=" font-size:16px"> Cosmos Hub (ATOM) Ledger Live Staking Guide </span></a></li> <li><a href="#T9"><span style=" font-size:16px"> imToken Comos (ATOM) Staking Guide </span></a></li> <li><a href="#T10"><span style=" font-size:16px"> Keplr + Ledger Cosmos Hub (ATOM) Staking Guide </span></a></li> <li><a href="#T11"><span style=" font-size:16px"> Cosmos Hub (ATOM) Staking FAQ </span></a></li> </ul> <h2 id="what-is-cosmos-hub-atom-staking-a-namet1a">What is Cosmos Hub (ATOM) Staking? <a name="T1"></a></h2> <p>When staking Cosmos Hub (ATOM) you are supporting the network with the additional benefit of compounding your ATOM!</p> <p>Staking ATOM is the process of holding ATOM "stake" to partake and support the operations in the Cosmos Hub network to receive rewards. In order to be a "Validator" and participate in these operations, one is required to maintain a server running continuously, technological knowhow, experience, and have a significant self-bond (surety bond).</p> <p>This is where P2P Validator comes in, we allow ATOM token holders to forget about all the heavy lifting i.e maintenance, surety bonds etc. by "delegating" their holdings to P2P to receive these rewards. We accumulate users' stake and act as a major validation node, receiving and allocating staking rewards between our users pro rata to the delegation.</p> <p>Users that chose to stake with P2P maintain full custody of their ATOM at all times and P2P will never have access to them.</p> <h2 id="why-stake-cosmos-hub-atom-with-p2p-validator-a-namet2a">Why Stake Cosmos Hub (ATOM) with P2P Validator? <a name="T2"></a></h2> <p>Every delegator is self-responsible for the financial decisions made. It is very important to choose the right validator in order to maximize your rewards.</p> <p>P2P Validator has been supporting the Cosmos Hub network from day one providing community building, educational materials and a solid development team. In the process, we have also set ourselves as a trusted validator for ATOM delegators.</p> <p>We have a highly skilled, dedicated and experienced team (proven by our victories at the Cosmos Hub Game of Stakes and Game of Zones) to handle the network operations involved in staking ATOM, promising the highest network reliability and performance to our delegators. We have a 100% uptime record and have never been slashed. We have a significant ATOM stake, further demonstrating the community's trust in our staking infrastructure. With consistency and a competitive fee, we promise to provide a high yield on your delegation.</p> <p>P2P Validator provides special offers for delegations over 50,000 ATOM making it one of the best places for institutional investors. You can register on our Cosmos Hub staking page or simply get in contact with us via telegram to receive these benefits.</p> <p>By staking ATOM with us you help secure the network and add more value to the Cosmos Hub ecosystem in the long run. If you have any concerns along the way you can get in touch with us anytime!</p> <h2 id="cosmos-hub-atom-staking-rewards-fees-a-namet3a">Cosmos Hub (ATOM) Staking Rewards & Fees <a name="T3"></a></h2> <p>You will be earning an estimated 19% APR when staking Cosmos Hub (ATOM) with P2P. Please keep in mind that the APR specified is approximate and changes along with network conditions.</p> <p>In order to run the staking infrastructure, we charge a 8% fee on your rewards. The rewards after taking the fee into consideration will therefore be 17.48%</p> <p>Example:</p> <p>I delegate 1000 ATOM to P2P</p> <p>Reward: 1000*19% = 190 ATOM</p> <p>Fee = 190*8% = 15.2 ATOM</p> <p>Estimated balance after 1 year = 1000+190- 15.2 = 1174.8 ATOM</p> <p>By simply delegating my 1000 ATOM as I hold it, I will have supported the network and earned an additional 174.8 ATOM after 1 year. Please keep in mind that the APR specified is approximate and changes along with network conditions.</p> <h2 id="how-to-track-my-cosmos-hub-atom-staking-rewards-a-namet4a">How to Track my Cosmos Hub (ATOM) Staking Rewards <a name="T4"></a></h2> <p>Tracking Cosmos Hub (ATOM) staking rewards is really easy when using the <a href="https://wallet.keplr.app/">Keplr wallet</a>.</p> <p>On your dashboard you will be able to see the amount staked and every pending reward for each delegation you have, not only on ATOM, but for every Cosmos Hub ecosystem supported chain.</p> <p align="center"> <img src="https://p2p.org/economy/content/images/2022/09/1-1.png" alt="Keplr dashboard"> </p> <h2 id="cosmos-hub-atom-warm-up-reward-distribution-frequency-a-namet5a">Cosmos Hub' (ATOM) Warm-up & Reward Distribution Frequency <a name="T5"></a></h2> <p>Unlike most other networks, you will start receiving rewards as soon as you delegate!</p> <p>Cosmos Hub staking rewards are paid out in real-time, with rewards accruing approximately every 6 seconds. Your rewards will be distributed in a separate account from your delegation and are not compounded to your delegation. At any point you can decide to add them to your existing stake and start earning interest on them. The benefit of having your rewards paid out in a separate account is that they are not locked (you may withdraw them immediately) whereas it takes 21 days to unbond your delegated ATOM.</p> <h2 id="re-delegate-cosmos-hub-atom-a-namet6a">Re-delegate Cosmos Hub (ATOM) <a name="T6"></a></h2> <p>It is very important to choose a validator that you trust and respect. Sometimes the validator you have selected may begin to perform poorly affecting your rewards, or they change their configurations (ex: increase commissions). You may also find that you would rather support another validator that supports the ecosystem in a way that better suits your vision.</p> <p>With Cosmos Hub (ATOM), you have the option to instantly change your validator once every twenty-one days. If you partially re-delegate ATOM, you can re-delegate the remaining amount without the 21 day restraint.</p> <p>You will not lose out on any rewards while re-delegating, but you will have to pay a small transaction fee.</p> <h2 id="cosmos-hub-atom-undelegation-period-a-namet7a">Cosmos Hub (ATOM) Undelegation period <a name="T7"></a></h2> <p>If you wish to stop delegating all together, the Cosmos Hub network enforces a 21 day period for your ATOM to unbond. In that period, you will not be earning interest on your unbonding ATOM and will not be able to withdraw them.</p> <p>Be aware that you can only unbond ATOM seven times with the same validator within a twenty-one day period.</p> <h2 id="cosmos-hub-atom-ledger-live-staking-guide-a-namet8a">Cosmos Hub (ATOM) Ledger Live Staking Guide <a name="T8"></a></h2> <p>We have created a step-by-step guide to help you stake your Cosmos Hub (ATOM) using the Ledger Live application!</p> <p>How To Stake Cosmos (ATOM) with Ledger Live | P2P Validator</p> <p>Before you start, make sure that you:</p> <ul> <li>Have updated Ledger live to its latest version</li> <li>Download the latest version of the Cosmos Hub App</li> <li>Add an ATOM account. Learn more</li> <li>Add ATOM to your account</li> </ul> <p>Getting started:<br> Go to your accounts and select the one you wish to stake from.</p> <p align="center"> <img src="https://p2p.org/economy/content/images/2022/09/2.png" alt="Select account"> </p> <p>At the bottom of the page you will see a section named "nominations". Here click on the button "Earn rewards":</p> <p align="center"> <img src="https://p2p.org/economy/content/images/2022/09/3.png" alt="Nominations"> </p> <p>A new window will pop-up detailing information regarding the delegation process. After reading, press "Continue":</p> <p align="center"> <img src="https://p2p.org/economy/content/images/2022/09/4.png" alt="Earn Rewards"> </p> <p>Search for P2P validator from the list of validators. Input the amount you wish to stake and press "Continue":</p> <p align="center"> <img src="https://p2p.org/economy/content/images/2022/09/5.png" alt="Choose Validator"> </p> <p>You will be prompted to confirm the delegation on your ledger device. Please note that the Cosmos Hub APP must be open before proceeding.</p> <p align="center"> <img src="https://p2p.org/economy/content/images/2022/09/6.png" alt="Confirm delegation"> </p> <p>You should now receive a confirmation message on your ledger live.</p> <p>That's it, your stake will activate and you'll start earning rewards immediately! Note that you will have to claim your rewards manually, which can either be added to your stake or to your available balances.</p> <!--kg-card-end: markdown--><!--kg-card-begin: markdown--><h2 id="imtoken-comos-atom-staking-guide-a-namet9a">imToken Comos (ATOM) Staking Guide <a name="T9"></a></h2> <!--kg-card-end: markdown--><p></p><!--kg-card-begin: html--> <p align="center"> <iframe width="720" height="405" src="https://www.youtube.com/embed/vS7YfHawhGc" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe> </p><!--kg-card-end: html--><p></p><!--kg-card-begin: markdown--><h2 id="keplr-ledger-cosmos-hub-atom-staking-guide-a-namet10a">Keplr + Ledger Cosmos Hub (ATOM) Staking Guide <a name="T10"></a></h2> <!--kg-card-end: markdown--><p>This <a href="https://p2p.org/economy/p/d7bb9334-8989-4299-a16d-02e52d6f26b7/">tutorial</a> helps you stake and manage <a href="https://coinmarketcap.com/currencies/cosmos/">ATOM</a> tokens on the <a href="https://p2p.org/networks/cosmos">Cosmos</a> blockchain, using both the <a href="https://www.keplr.app/">Keplr</a> Browser Extension and Web Wallet together with your favorite <a href="https://www.ledger.com/">Ledger</a> device.</p><!--kg-card-begin: html--><p align="center"> <iframe width="720" height="405" src="https://www.youtube.com/embed/_2uJZJ7BqYg" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe> </p> <!--kg-card-end: html--><p></p><!--kg-card-begin: markdown--><h2 id="cosmos-hub-atom-staking-faq-a-namet11a">Cosmos Hub (ATOM) Staking FAQ <a name="T11"></a></h2> <h3 id="what-is-cosmos-hub">What is Cosmos Hub?</h3> <p>Cosmos Hub is a decentralized network of independent, scalable, and interoperable blockchains.</p> <h3 id="what-is-the-cosmos-hub-staking-apr">What is the Cosmos Hub staking APR?</h3> <p>The Cosmos Hub staking reward is approximately 16.1%. More info here.</p> <h3 id="how-often-are-staking-rewards-distributed">How often are staking rewards distributed?</h3> <p>Cosmos Hub staking rewards are paid out in real-time, with rewards accruing approximately every 7 seconds. More info here.</p> <h3 id="is-there-an-unstaking-period">Is there an unstaking period?</h3> <p>The Cosmos Hub network has a 21 day unstaking period throughout which your tokens will not be transferable. More info here.</p> <h3 id="is-there-a-slashing-risk-for-validators">Is there a slashing risk for validators?</h3> <p>Cosmos Hub network does have slashing risk for delegators.</p> <h3 id="is-there-a-minimum-staking-amount-for-cosmos-hub">Is there a minimum staking amount for Cosmos Hub?</h3> <p>There is no minimum staking amount for staking ATOM.</p> <h3 id="do-staking-rewards-compound">Do staking rewards compound?</h3> <p>No, staking rewards must be claimed by the user manually and delegated to achieve compounding effect.</p> <h3 id="what-is-the-cosmos-hub-inflation-rate">What is the Cosmos Hub inflation rate?</h3> <p>The Cosmos Hub network inflation rate is approximately 7% per year.</p> <!--kg-card-end: markdown-->
<p></p><h3 id="summary">Summary </h3><p>On September 4 at 15:15 UTC one of our collators stopped syncing and due to an error in the monitoring rules the incident went unnoticed. As a result of this the collator did not produce blocks for a period of 27 hours.</p><h3 id="what-happened">What Happened?</h3><p>An error was made in one of the many rules of our monitoring system. When writing this rule, we mistakenly used the wrong metric to determine the status of the collator in the candidate list. As a result, when the collator stopped synchronizing, the engineering team did not receive any notifications about the incident.</p><h3 id="customer-impact">Customer Impact</h3><p>Delegators who nominated and had their staked allocated to this collator did not receive rewards for a period of 4 rounds.</p><h3 id="what-went-wrong">What went wrong?</h3><p>Unfortunately, we received information about the incident from an external source, which is unacceptable.</p><h3 id="what-went-well">What went well?</h3><p>After receiving information about the incident, the failed collator was promptly restored as soon as possible and began to produce blocks.</p><h3 id="lessons-learnt-and-action-plan">Lessons learnt and action plan</h3><p>We are going to implement strict checks and audits of all our monitoring rules. We are also in the process of automating testing of monitoring rules as much as possible before applying them to the production environment.</p><p><br>P2P takes full responsibility for the event that led to the weak performance and we are sorry for the inconvenience. Please be assured that we are taking actions to eliminate even a small probability of such an event occurring in the future.</p><hr><p><strong><strong><strong>About P2P Validator</strong></strong></strong></p><p><a href="https://p2p.org/">P2P Validator</a> is a world-leading staking provider with the best industry security practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only high class staking opportunities. At the time of the latest update, more than 1.5 billion USD value is staked with P2P Validator by over 25,000 delegators across 40+ networks.</p><p><em><em>If you have any questions, feel free to join our<a href="https://t.me/P2Pstaking"> Telegram chat</a>, we are always open for communication.</em></em></p><p><br></p><p> </p>