ConsenSys Releases Ethereum 2.0 Sentiment Report As ETH Switches to Proof of Stake (PoS)
A new report was released by blockchain software technology company ConsenSys on the upcoming Ethereum 2.0 update. The report details the attitudes of ethereum users when it comes to staking on the new network.
This is significant because ethereum will change from a proof-of-work (PoW) consensus algorithm to proof-of-stake (PoS), one of the largest shifts of its kind for the world’s second-largest cryptocurrency by market cap.
ConsensSys describes the shift as an “opportunity for ETH holders to create a revenue-generating capability for providing public infrastructure to the wider community.”
As part of the study, over 287 ETH holders were polled a number of questions broken down into four broad categories.
The highlights from the report are as follows:
- 32.8% of holders were planning to run their own validator nodes on the network
- 33.1% planned to use a third party staking provider
- 14.6% were undecided if they would stake or not
- 2.8% were not planning on staking their ethereum
A report detailing the portfolio of respondents was also provided. Over half of the people surveyed held bitcoin in their portfolio, while 84% held stablecoins and 20% held layer 1 and layer 2 assets such as Tezos, Loom, and Matic.
When it came to the amount of ether that each person holds, 63.2% held 32 ETH or more, while 22.5% held less than 32 ETH. The remaining respondents chose not to disclose how much ether they had in their wallets. It was noted in the report that those who intended to run their own validator nodes generally held larger amounts of ETH than those who did not.
Respondents were asked questions about how they choose to manage their portfolios. 46% of holders said that they hold their cryptocurrency in hardware wallets, and this was especially true for large-scale holders of ether. A third of people who intend on staking through an external provider keep the majority of their holdings on a centralized exchange such as Coinbase.
Questions were asked to gauge people’s level of understanding of ETH2’s economics. 54.4% of people said that they had a general to a firm understanding of how the new model will work, while only 15.8% said that they had a firm understanding. Those who intend on running their own validator node were reportedly the most knowledgeable.
Profiles of the different users on the new network were also constructed from the findings of the study.
Who intend to run their own validators:
- Hold the most amount of ETH
- Have the highest understanding of ETH2 economics
- Store the majority of their holding in hardware wallets
- Expect 5.8% annualized rewards
- Will participate in Phase 0 of the network rollout
- Care the most about slashing protection and enhanced node management features
Who plans to run a third-party node provider:
- Hold 32 ETH or more
- Have a basic level of understanding of ETH2 economics
- Store most of their ETH on exchanges
- Expect a 7.6% annualized return
- Care the most about portfolio features and compounding options
Who are undecided about staking:
- Hold 32 ETH or more
- Have the lowest understanding of staking economics
- Store most of their ETH in hardware wallets
- Expect an average of 9.4% annualized rewards
- Care about risk mitigation, liquidity options, and insurance
Who does not plan to stake:
- Hold less than 32 ETH
- Have a low understanding of staking economics
- Store most of their ether in non-custodial wallets
- Indicates that a lack of understanding of how staking works as the main reason for not participating