150K ETH ($47M) Already Sent to ETH 2.0 Testnet Validator Address
The ETH2 validator launchpad is now live, according to the Ethereum Foundation. Thus, potential validators can learn how the upcoming network works.
Ethereum 2.0 Validators Can Deposit Into Medalla
Those who want to become validators in the upgraded version of Ethereum, which will fully adopt Proof of Stake (PoS) soon, can finally get familiar with all aspects of the transition process. For this, Ethereum introduced the validator launchpad, whose primary goal is to help validators learn all details related to Ethereum 2.0.
“Above all, we want to make sure validators know what they’re doing, and why they’re doing it,” the ETH2 research team explained in a blog post.
Those who want to become validators can deposit into Medalla and monitor their stake. Medalla, which will begin on August 4, is the final Ethereum 2.0 testnet version deployed by the Ethereum Foundation (EF).
The EF said that its research team has been working very hard along with Consensys and DeepWork Studio.
Announcing the #eth2 validator launchpad (testnet version).https://t.co/G0y4itoJzA
— Ethereum (@ethereum) July 27, 2020
What Should Validators Know?
The research team reminded potential validators that they should be well informed about the new upgrade before signing up. As a validator, one can receive continuous payouts for staking and contributing to the security of the network, but there are several risks involved as well. For example, validators who don’t act in line with the specifications can be penalized. The same will happen with those who are offline and don’t actively participate in consensus.
Besides risks, there is a great deal of responsibility. Validators will have to manage their keys rather than simply joining a staking pool. The keys generated by validators are derived from a unique mnemonic. Without it, they won’t be able to withdraw funds.
Ethereum 2.0 will be resealed in three phases:
- Phase 0 – it touches upon all aspects of ETH 2.0’s consensus. Validators and their balances are tracked during this period.
- Phase 1 – it adds and stores data related to ETH 2.0.
- Phase 2 – it adds execution to the upgraded network, which allows programs to be run on it.
The testnet launch is chronologically positioned right before the Phase 0.
When it comes to rewards, the EF said that they are not fixed.
“If the total amount of ETH staked is low, the annual reward is high, but as the total stake rises, the reward received by each validator starts to fall,” the blog explained.
The Ethereum 2.0 testnet deposit contract is already bombarded with transactions ahead of Medalla launch. As of today, about 5,000 deposits have been made. In total, over 150,000 ETH has already been deposited, suggesting that the minimum threshold of 524,288 ETH will be likely achieved before the start.
At the time of writing, Ethereum is trading above $318, up 2.80% during the last 24 hours. The price hasn’t reacted much to the launchpad news yet. The chances are that the frenzy surrounding the upgrade has already been priced in.