The number of Ethers (ETH) locked in the Ethereum 2.0 deposit contract has just exceeded 10% of the total supply in circulation. As a reminder, these coins can only be unlocked once the network has made its transition to the Proof-Of-Stake (PoS) consensus.
10% of all ETH locked
In the near future, the Ethereum Network (ETH) is expected to migrate to a new protocol, better known as the Beacon Chain. This is the first step in the network’s transition from a Proof-Of-Work (PoW) consensus to a Proof-Of-Stake (PoS) model.
One of the primary elements of the Beacon Chain consensus mechanism is the Ethereum 2.0 Deposit Agreement. It allows users to lock their Ether in staking in order to become a validator, create and certify blocks and contribute to the security of the network.
Launched in November 2020, the contract now holds over 10% of the total amount of Ether in circulation. This represents 12 million coins, valued at about $34 billion at the time of writing.
It is important to note that to become a validator in Ethereum 2.0, a user must deposit a minimum of 32 ETH. In addition, the deposited funds will be locked until the final transition of the network. This is a testament to the community’s enormous confidence in the project, despite the many delays.
Ethereum 2.0 is still behind schedule
After several postponements, Ethereum’s merge (i.e. the connection of the network’s executive layer to the Beacon Chain) was finally scheduled for June 2022. However, a developer from the Ethereum Foundation, Tim Beiko, recently announced on Twitter that it will finally take a few more months:
“It won’t be in June, but probably within a few months. No set date yet, but we are definitely in the final chapter of PoW on Ethereum.”
Another disappointment for Ethereum followers, who will have to wait a few more months before witnessing this famous and long awaited migration. The reception of this information has been rather mixed on the side of the community. While some point to the constant delays, others support the decision not to rush.
One thing is for sure, Ethereum’s transition is as much a technical issue as it is a governance issue. As you can see, the miners are going to give way to the validators and for the moment, no solution has been found to accompany them in their own transition.