One of Ethereum’s most popular software wallets, MyEtherWallet is joining other crypto businesses by giving users access to Ethereum 2.0 staking.
MyEtherWallet "users need to stake 32 ETH to participate. Staked will run a validator node for them, making it easy for the users who don't have the technical knowledge to participate, so no further action is required on the user's part,” MyEtherWallet CEO Kosala Hemachandra told CoinDesk.
Staking Ethereum 2.0
Staking ETH for the upgrade requires an Ethereum node, so Staked hosts this node and provides software for users to manage their deposits on MyEtherWallet. Staked and MyEtherWallet claim the service is non-custodial (meaning users keep control of their keys), though similar services through exchanges like Coinbase require relinquishing custody.
These stakers will become validators in the new network, the transaction processors who will replace miners under Ethereum 2.0’s new proof-of-stake design and who are paid in ETH for their services.
To become a validator, Ethereum users must stake at least 32 ETH in the Beacon Chain deposit contract. MyEtherWallet stakers will receive validator rewards in ETH, but those rewards cannot be withdrawn at least “until phase 2 (around two years),” Hemachandra said.
The Ethereum 2.0 Beacon Chain contract went live in the first week of November. After receiving enough ETH to kick-start Phase 0 of the migration to Eth 2.0, the Beacon Chain officially launched on Dec. 1.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.