Earlier this month, it was announced by Vitalik Buterin that the ETH2 deposit address was live. This meant that the much-awaited upgrade was finally around the corner. As of now the Ethereum blockchain runs a Proof-of-Work consensus algorithm which is both energy-intensive and difficult to scale. The plan is to upgrade the chain and implement a Proof-of-Stake consensus algorithm with this Serenity upgrade.
If by the 24th of November 525,288ETH are deposited into the ETH2 contract, then the launch of genesis will be on December 1st. This number of ETH equates about $250 million at today’s ETH price (~$470).
As of now 105,120ETH have been deposited which is 20% of the requirement and we are less than a week away from the 24th of November. If accumulating this number of ETHs takes longer then the genesis event will be pushed accordingly.
ETH2 depositors will benefit from staking rewards of about 25%APY. The issue they are facing however is how long their funds remain locked in there. For now, this deposit contract is a one-way street. Once in, funds cannot be withdrawn until Phase 2 is completed and that is estimated to take a few years.
$10M Investment from IBC
Firm believers in Ethereum’s mission are willing to take a chance on it and lock funds from an extended period of time. One of those people is Khurram Shroff, Chairman of the IBC Group, whom is willing to deposit 20,000ETH into the contract (~$10M). He stated: “We are very excited by the ‘Proof of Stake’ concept proposed for the Ethereum 2.0 smart contracts and are locking up 20,000 eth which is a one way trip till phase 2, this lockup shows our confidence in ETH2 and dedication to the beacon chain. The greener and more efficient version being introduced in the second iteration addresses the unsustainably high energy consumption required by the ‘proof of work’ model, making it even more attractive”.