Ethereum switched to a Proof-of-Stake (PoS) consensus algorithm in 2022 to improve the network’s speed, efficiency, and scalability. Before this change was made, Ethereum used Proof-of-Work (PoW) and a mining mechanism to process transactions. In PoS, instead of mining, users can stake their coins in order to validate transactions and earn rewards.
After the Merge, Ethereum's Mainnet is replaced with the Beacon Chain. On April 12, 2023, the Ethereum Shanghai Upgrade (EIP-4895) added withdrawal functionality.
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If you want to become a validator on Ethereum, you are required to stake a minimum of 32 ETH. You will need to fulfill the minimum staking requirement, prepare the hardware equipment, and hold some additional assets to settle the node operation costs. You must also consider other risks, such as slashing and liquidity risks associated with unstaking queues.
To address this, Binance launched the ETH Staking service to offer a more accessible way for everyone to participate in Ethereum staking. You can start with just 0.0001 ETH, and Binance will bear the risk of on-chain penalties.
Note: Starting from 6 July 2023, Binance applies a 10% fee on ETH staking rewards. The fee is applied prior to the staking reward distribution. This fee will help to offset operating costs, such as hardware and network maintenance costs related to setting up validator nodes. The remaining on-chain staking rewards will be fully distributed to users.
How to participate in Binance ETH Staking?
1. Log in to your Binance account and click [Earn] - [Staking] - [ETH Staking].
2. Click [Stake Now].
3. Enter the amount you want to stake and you will see the BETH amount you can get. Read and agree to the terms and click [Confirm].
4. A second confirmation window will pop up. Read and confirm the terms and conditions by checking the boxes. Click [Confirm].
5. You have successfully staked your ETH. You can view your staked assets and reward details on the ETH Staking page.
During the staking period, BETH rewards will be distributed daily based on your BETH holdings. The ETH redemption amount will be based on your current BETH holdings instead of your initial staked assets. For example, if you stake 100 ETH, you can get 100 BETH at a 1:1 ratio. On the redemption date, if you hold 110 BETH, you can redeem 110 ETH. Binance will cover all validator operating expenses for users on ETH Staking. For more details about the ETH rewards distribution, please refer to the FAQ section on the ETH Staking page.
When will I start receiving the staking rewards?
If you hold BETH, the staking rewards will be distributed in the form of BETH to your Spot Wallet daily from T + 2 day. For example, if you choose to stake your ETH today (T - day), your BETH rewards will start accruing the next day (T + 1 day), and the staking rewards of T - day amount will be distributed on the next day after accruing (T + 2 day).
How to redeem from Binance ETH Staking?
1. Log in to your Binance account and go to [ETH Staking]. Next, click the [Redeem] button.
2. Enter the amount of ETH you would like to redeem from your BETH balance, and click the [Redeem] button.
Please note that the expected ETH distribution date is indicated on the page and users can’t cancel their ETH redemption requests after submission.
Daily Personal Redeem Quota: The maximum amount of ETH that can be redeemed daily.
Daily Total Redemption Limit: The maximum amount of ETH that can be redeemed on the platform. The redemption pool replenishes throughout the day to maintain a fair distribution. The replenishment schedule and quota may vary to ensure a smooth user experience.
Redeem Amount: The amount of BETH to redeem into ETH.
Available Balance: The amount of BETH available in your Spot Wallet.
Distribute: The amount of ETH to be returned to you.
Redemption Date: The date and time of submission of the redemption request.
ETH Distribution Date: The expected date and time of ETH being returned to your Spot Wallet.
3. The redeemed ETH will be returned to your Spot Wallet when your ETH withdrawal request is fully processed.
Due to the processing limitations on the Ethereum network, Binance will set a daily ETH redemption quota for each Binance user.
The daily ETH redemption quota and processing time are subject to change. Please check the redemption page for the estimated processing time. You can also check the delivery date and status for submitted redemption requests here.
BETH under the redemption process will not generate any ETH Staking rewards.
Can I withdraw BETH outside of Binance?
BETH withdrawal outside of the Binance platform is not supported. If you would like to withdraw the staked ETH from Binance for other purposes or participate in DeFi applications while still entitled to the ETH Staking rewards, you may consider wrapping your BETH into WBETH.
This document may have been translated and published in different languages. In the event of any inconsistency, misstatements, omissions, or errors appearing in any translated version, the English version shall prevail.