Are Staking Targets Too High to Achieve for ETH 2.0 Beacon Chain Launch on Time?
ETH 2.0, the new Proof-of-Stake-based blockchain system is gearing up for the official launch of Beacon Chain to commence Phase 0 of the ETH 2.0 rollout. However, in order for the official launch on December 1st, there should be at least 16,384 validators on board by November 24th, where each validator must stake 32 ETH. In order for the official launch to commence on time, a total of 524,288 ETH must be staked by November 24.
Almost 20% of the phase 0 staking goal have been reached.
— glassnode (@glassnode) November 18, 2020
The total number of staked ETH has gone past the 100,000 mark, however, it is only 19.2% of the total cap required to launch the Beacon Chain. The slow staking rates could be attributed to the 32 ETH deposit criteria which many believe could lead to governance issues in the long term. The cost of over $14,000 to become a validator on ETH 2.0 is too high for the small
100,480 ETH has been staked in the Eth2 deposit contract.
423,808 more ETH is needed to launch Eth2.
— Eth 2.0 Deposit Contract – Progress Meter Bot (@DepositEth) November 18, 2020
The high cost would not only cut out smaller players but it would also create a monopoly among whales that could lead to validator centralization. One such case has arisen even before the deposit amount reached over 100,000 ETH where one ETH address has sent almost 20% of the total deposited ETH.
Dubai based IBC group announced today that they would be investing $10 million or 20,000 ETH in association with CanETH, an institutional-grade staking service. The investment from the IBC Group could be a real boost to the chances of reaching the goal of reaching 524,288 ETH.
Chances of Reaching the ETH Staking Goal Looks Dim
The staking goal at this point looks too mammoth to conquer with only 8 days remain to reach the goal. ETH 2.0 has been plagued by several hiccups on its way which include countless delays, bugs, and many other issues. The critics have pointed towards the staking issue for a long but Vitalik Buterin seemed unphased as he preponed the date of the launch from January to December.
It would be interesting to see whether ETH 2.0 Phase 0 rollout meets with another delay or miracle manages to launch on time.
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