The current model of staking in the new Ethereum blockchain (2.0) requires a minimum stake of 32 ETH (which at current prices is equivalent to approximately $ 5200).
At a conference of devcon ethereum developers, Colleen Myers of Consensys said that validators with 32 ETH can count on annual ethereum 2.0 to 10.4%.
Myers is currently developing Ethereum Calculator 2.0, an application that will allow validators to calculate the annual total and net income (taking into account the cost of equipment and electricity).
“The calculator is being developed for researchers, validators and enthusiasts in order to increase transparency in the economy of Ethereum 2.0 ,” he said.
Myers plans to release a calculator along with the launch of Ethereum 2.0, which is tentatively scheduled for the first quarter of 2020.
At the same time, he emphasized that the current reward figures of validators are not final, since the community is still discussing the parameters of the upcoming update.
Christy-Leith Minehan, lead developer of the controversial Ethereum update ProgPoW , said:
“This is an assumption from the developer, but until we switch to Ethereum 2.0, no one will know the exact numbers. Now they are constantly tweaking the calculations. ”
One of the latest proposals by the creator of the ethereum, Vitalik Buterin, suggests a sharp reduction in the number of “mini-blockchains” (shards) at the initial stages of the deployment of ethereum 2.0 – instead of the planned 1024 shards, Buterin suggests launching only 64.
This proposal has been well received by researchers and developers, as reducing the number of shards will reduce the complexity of the network. However, this also means reducing the number of validators and the total steak needed to protect Ethereum 2.0. Myers said:
“If the number of shards is reduced, then the power of the validators will need to be increased. This is a higher class of equipment, which slightly increases the cost of participation as a validator. "
With these warnings, Myers highlighted three important details of the economic model of Ethereum 2.0:
Revenue target
According to Myers calculations , validators with 32 ETH can earn up to 10.4% per annum if the network starts with 2 million ETH.
This target revenue for validators is unlikely to change, even if only 64 shards are launched. However, calculations of “net emissions” (Myers term), which takes into account equipment costs, will probably have to be updated.
Crowd behavior
After the launch of Ethereum 2.0, more validators will be required to protect the network and ensure the integrity of all participants.
At the first stage of network startup (or phase zero), only one PoS blockchain is introduced: beacon chain. In the next stage (first phase), the developers plan to launch 1024 (or 64) other PoS blockchains (shards). According to Myers, the system will need more validators to protect all of these additional blockchains .
As the total steak in Ethereum 2.0 grows, the size of the annual fee for each individual validator will decrease. The dynamic reward scheme ensures that the network will never underestimate or overpay for its security.
Network emission
Even in an ideal scenario, when all validators will have a 32 ETH steak in a network with 1024 shards, the total amount of ether emission should not exceed 1% per year.
However, since the launch of ethereum, ether emissions have been a constant subject of controversy in the community. Unlike Bitcoin with a strict limit of 21 million coins, the offer of ether will grow over time. Currently, ether emissions are about 4.5% (according to ETHHub data ).
The emission level reached 18%, but recently it has significantly decreased due to a series of system-wide updates (hard forks), in which the developers reduced the remuneration for the block.
In Ethereum 2.0, the new issue policy is aimed at ensuring a constant inflation rate below one percent and, therefore, the stability of ETH in the long run.
Publication date 10/26/2019
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