Ethereum 2.0 Deposit Contract Now Holds 10% of ETH in Circulation

10% of all ETH locked

In the near future, the Ethereum (ETH) network is expected to migrate to a new protocol, popularly known as Beacon Chain. It is the first step in the transition from a Proof-Of-Work (PoW) consensus network to a Proof-Of-Stake (PoS) type model.

One of the core elements of the Beacon Chain consensus mechanism is the Ethereum 2.0 deposit contract. It allows users to lock their Ether in staking in order to become a validator, to create and certify the blocks and to contribute to the security of the network.

Launched in November 2020, the contract now holds more than 10% of the total amount of Ether in circulation. This represents 12 million coins, valued approximately $34 billion at the time of writing these lines.

It is important to note that to become a validator in Ethereum 2.0, a user must deposit a minimum of 32 ETH. In addition, funds deposited will be locked until final network transition. This speaks to the community’s enormous confidence in the project, despite the many delays.

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Ethereum 2.0 is still lagging behind

After several postponements, the merge of Ethereum (i.e. connecting the executive layer of the network to the Beacon Chain) was finally scheduled for June 2022. However, a developer from the Ethereum foundation, Tim Beiko, recently announced on Twitter that it will ultimately be necessary to wait a few more months :

“It won’t be in June, but probably in the next few months. No date set yet, but we are definitely in the final chapter of Ethereum PoW. »

A new disappointment for Ethereum enthusiasts, who will have to wait a few more months before attending this famous and long-awaited migration. Receipt of this information was rather mixed on the community side. While some point to the relentless delays, others support the decision not to rush.

One thing is certain, the Ethereum transition is as much a technical problem than one of governance. You will have understood it, the minors will be erased to give up their places to the validators and for the moment, no solution was found to support them in their own transition.

👉 To dive deeper — Ethereum (ETH) migration to Proof-Of-Stake pushed back to Q3 2022

About the Author : Lilian Aliaga

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Freelance writer located between Paris and Toulouse. I want to share my passion for the world of cryptocurrencies to as many people as possible. I am also interested in technical analysis and trading.
All articles by Lilian Aliaga.

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