Ethereum 2.0 is gearing up! The staking deposit contract has been released, but the funding threshold has yet to reach 5%.

As global attention is focused on the U.S. presidential election, the Ethereum Foundation has released an important update, unveiling the initial version of Ethereum 2.0 specifications. The mainnet deposit contract address has also been officially activated, with Ethereum 2.0 expected to go live on December 1st. However, this also means a delay from the previously advocated November release by the founder, Vitalik Buterin.

Expected to Launch on December 1

According to the official announcement, Ethereum 2.0 Phase 0 is set to be released around December 1. Users who wish to become effective validators will need to deposit at least 32 Ether seven days prior to the release date.

As mentioned by Ethereum 2.0 coordinator Danny Ryan, for the mainnet to officially launch, there must be 16,384 validators who have deposited at least 32 Ether for over seven days before the release, totaling 524,288 Ether (approximately $200 million at current prices). Otherwise, the mainnet launch will be delayed again until seven days after the target is reached.

Staking Rewards and Risks

After years of delays, this is the closest Ethereum 2.0 has come to a definite release date. Users are eagerly anticipating the incentive mechanism for transitioning to Proof of Stake (PoS). Staking service provider Staked notes that when the total staked Ether is below 1 million, the yield can reach 15%-20%, but as the staked amount approaches 5 million, the yield will gradually decrease to around 7%.

However, there are potential risks in participating in Ethereum staking. Research firm The Defiant points out that staked Ether may be locked up for up to 2 years. Ethereum's roadmap is divided into three phases, with Phase 0 being the initial version of 2.0, and it's not until Phase 2 that transfer and smart contract functionalities can be realized.

Phase 0 has already been delayed by a full year, and this is followed by the release of Phase 1, so Phase 2 may not launch until 2022. Additionally, there are validation penalties such as slashing and inactivity leak, where validators may be fined for not fulfilling their duties or being offline for too long.

Total Deposits Still Below 5%

According to data from Dune Analytics, as of now, the mainnet deposit contract address 0x00000000219ab540356cBB839Cbe05303d7705Fa has received 18,152 Ether, worth approximately $7.31 million at the time of writing, but this is still far from the required threshold of 524,288.

Therefore, if by 11:59 PM on November 23, there are still not 16,384 validators or the total deposit is below 524,288 Ether, Ethereum 2.0 will be delayed once again. With this positive news, Ether has surpassed the $400 mark since October 28, with a price of $403.1 at the time of writing.