Ethereum Merge: Can Small Investors Benefit?

[Mika]

Ethereum was originally created as Proof of Work Consensus mechanism. Proof of Works means miners have to validate your transaction. Energy consumption is very high in this mechanism, which is one of the main reasons why some people hate crypto.

Ethereum Foundation later created ETH 2.0 which was based on Proof of Stake consensus mechanism. In this method, transactions will be validated through staking.

ETH Merge ended Proof of Work and now ETH is basically Proof of Stake.

Proof of Stake also allows you to earn staking rewards.

Sadly, the condition Ethereum Foundation has set requires you to have 32 ETH before you can stake. This implies that you need at least $50,000 (at the current price) worth of ETH before you can stake.

Centralized Exchanges are trying to take benefit of this situation by offering Staking Pool. This will allow the Exchanges to control most of the ETH in the market. You will not be in control of your ETH.

 

[Suba]

If we look at the minimum requirement for staking Ethe is 32 Ether or $ 40,192 (current Ether price is $ 1,256). But luckily it's not only the whales who can take advantage of the full merger of Ethereum 2.0, because now there are many crypto exchanges that provide pool staking services for Ether 2.0. There is generally no minimum limit on how much Ether to stake, so small investors can also enjoy this advantage. The official reward for staking Eth is around 3.52% per year, this doesn't mean you have to save Ether for a year, usually the storage for staking Ether depends on the duration of the lock or freeze, after that you will get a staking reward, which is calculated daily. After the Ether locking period ends you can Unstake for withdrawal. However, besides the benefits of staking Ether, of course there will also be disadvantages of capital loss if the price of Ether falls from the purchase price. There is also the possibility of a Slashing risk where the validator server is damaged or does not work properly, the stakers will be penalized

 

[ImamShaheb]

Now we have the answer....😑