The Launch of Ethereum 2.0 Appears to be Looming, and not in the Good Sense

While Ethereum 2.0 is scheduled to be deployed on December 01, the actual deadline for the commencement is November 24, 12 pm (Universal Time Coordinated).

For phase 0 of Ethereum to be launched, 524,288 ETH, in total, are needed to be allotted in the deposit contract. 

However, just seven days ahead of the launch, Dune Analytics data has indicated that there seems to be the probability of a looming delay in the deployment as out of 524,288 required ETH, only 98,304 (or 18.75%) were placed at the time of issuance. 

For the launch to be effective, at least 32 ether (the cryptocurrency supporting the network), which is currently worth approximately $14,800 in the marketplace, are required to be staked by 16,384 validators. 

If Ethereum is to be deployed on December 01, as per the plan, it is mandatory that the threshold be met one whole week before the deadline. Keeping in mind the needed amount and the one that has been attained until now, 426,000 more ether (circa $197 million) need to be betted by November 24, which seems hugely dubious now. 

As per the data read by Dune Analytics, 476 single depositors have made only 3,077 transactions to the deposit contract. 

From November 6 to 12, no noteworthy participation was recorded, however, on November 14 and 15, the trend looked to have changed as over 16,000 ETH was transferred. But this might not be sufficient as this makes up only 20% of the required amount and 80% is still missing. 

On the other side, there are certain reasons why Ethereum investors are not participating as much. 

As stated by CNF, 32 ETH, at minimum, are needed to be sent to the deposit contract by the investors, for them to be included in the Ethereum 2.0 Beacon Chain group. That is the way for them to access staking rewards. However, sufficient incentives are not there to encourage investor involvement, as uttered by investor Qiao Wang. 

The problem is that the users’ potential interest appears to have been overestimated.

Last month, ETH acquired a gain of 25.56% and is now trading at $470. This can be one of the reasons why most investors, instead of investing in ETH to keep it locked in for a good number of years, prefer to have liquidity so that they can earn profits. 

Vitalik Buterin, the inventor of Ethereum, had stated that the network would not favor miners in the future. This is why Ethereum miners have their objections about Eth2. 

However, some solutions have been suggested to encourage participation. For instance, an ETH 2.0 validator vault can be created for small investors to participate too. 

 

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