Ethereum 2.0 Deposit Contract Tops $22.5M One Week After Launch

The deposit contract for Ethereum’s 2.0 upgrade now holds over 50,000 ETH – 10% of the threshold needed to activate the watershed update.

AccessTimeIconNov 10, 2020 at 10:24 p.m. UTC
Updated Sep 14, 2021 at 10:29 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

After going live last week, the deposit contract for Ethereum’s 2.0 upgrade now holds over 50,000 ETH – 10% of the threshold needed to activate the watershed update.

This deposit contract is the cornerstone of the Ethereum 2.0 update and serves as a bridge for the  migration Ethereum network away from proof-of-work (PoW) to a new technical infrastructure that supports proof-of-stake (PoS).

In order to become a transaction validator on the new network (those individuals who process transactions like miners in PoW), an Ethereum user must stake at least 32 ETH. There are currently 52,801 ETH locked up in the deposit contract worth $23.8 million, and it will need at least 524,288 ETH split between 16,384 stakers to trigger Eth 2.0’s “genesis event” and activate the upgrade. 

Once Ethereum 2.0 goes live, these validators will begin earning block rewards on the new network at an estimated rate of 8%-15% annually, a lucrative yield that is a necessary deal sweetener for what may be considered a risky upgrade.

A few days after the contract went live, Ethereum creator Vitalik Buterin sent 3,200 ETH worth roughly $1.4 million to the contract to claim 100 validators. Once the 16,384 validator threshold is reached, then the central nervous system of the new network, the Beacon chain, will go live. 

Ethereum developers estimate the Beacon chain will go live sometime in December. If and when it activates, the migration will move on to the second of four phases needed to complete the Eth 2.0 upgrade.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.