- Ethereum launches Eth 2.0 validator Launchpad.
- Time for ETH 2.0 testnet networks.
The Ethereum Foundation, in partnership with ConsenSys and DeepWorks, launched an Ethereum 2.0 validator Launchpad easing the transition to the proof-of-stake (PoS) upgrade. The Launchpad allows users to keep track of and make deposits into the upcoming Medalla multi-client testnet as miners move to the staking protocol.
According to the launch statement by the EF, the validator Launchpad will allow ETH holders to become validators to keep the blockchain’s security in check while ensuring they are well educated on the risks and benefits of becoming validators.
— Ethereum (@ethereum) July 27, 2020
One of the significant differences between becoming a validator and simply staking is the self-responsibility over your own private keys. The Launchpad gives a complete guide through on the risks, responsibilities, and guidance on how to become an ETH 2.0 validator.
The risks and responsibilities
Managing your private keys ensures the network is secure from a centralized attack but comes with some issues in speed and quick transfer of ETH funds. Unsurprisingly, this is not the only risk that validators face. There is a slashing risk involved too for validators that act maliciously on the network alongside other early adopter risks involved.
One of the responsibilities that validators have on the new chain is participating in consensus decisions to receive their rewards. Validators need to stake at least 33 ETH to the platform with a long term view as rewards will start to be disbursed after Phase 1 (still awaiting Phase 0). Once staked, the recovery of the tokens is irreversible until the Phase 1 release.
The validator rewards?
For such a significant risk, validators are promised up to 10.5% in annual returns to secure the network. Unlike the mining rewards, the staking rewards will be a variable APY rate, as explained in the blog post:
“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 Ethereum 2.0 staking APY yield curve (Image: Ethereum Foundation)
The multi clients’ testnets
Once you successfully deposit your 33 ETH and become an ETH validator, the Launchpad will offer no less than four clients, Lighthouse, Nimbus, Prysm, and Teku, to assist in setting up your Beacon Node, importing your key stores, and running your Validator.
Ethereum 2.0 Phase 0 launch date remains a variability with different top developers giving different dates of launch. Recently, long term ETH developer Afri Schoedon stated the platform could see a November 2020 launch.