What is Ethereum 2.0?
Ethereum 2.0 (also known as Eth2 or Serenity) is an upgrade that aims to improve the scalability, security, and sustainability of the Ethereum network. The Ethereum 2.0 upgrade will be released in three phases: Phase 0, Phase 1/1.5, and Phase 2.
Phase 0 was launched on December 1, 2020, when the Eth2 deposit contract reached the required minimum assets (524,288 ETH). Phase 1/1.5 is expected to roll out in 2021, followed by Phase 2.
After Phase 2, the Ethereum network will transition from a Proof of Work to a Proof of Stake model, which is expected to improve the network’s speed, efficiency, and scalability. For more details about Eth2, please refer to the Academy article What is Ethereum 2.0 and why does it matter.
Binance ETH 2.0 Staking
If you want to become a validator on Ethereum 2.0, you are required to stake a minimum of 32 ETH. In return, you’ll support the network and receive rewards. You will need the minimum stake, hardware equipment, and additional assets to settle the node operation costs. You must also consider additional risks, such as the prolonged lock-up period that might be required to complete the ETH 2.0 update. Participating in Ethereum Staking isn’t simple, and involves risks.
To address this, Binance launched the “ETH 2.0 staking” service to provide everyone with an accessible Ethereum 2.0 staking. You can start in a few clicks with just 0.1 ETH, and Binance will cover all validator operating expenses and bear the risk of on-chain penalties. All on-chain staking rewards will be distributed to users.
How to participate in Binance ETH 2.0 Staking
1. Log in to your Binance account and click [Finance] - [Binance Earn]. Scroll down to[ETH 2.0 Staking] and click [View More].
2. Click [Stake Now], enter the amount you want to stake, and click [Confirm].
3. A second confirmation window will pop up. Please double-check the terms and conditions and click [Confirm] if you agree.
During the ETH 2.0 staking period, BETH rewards will be distributed daily based on user BETH holdings.
*For more details about the distribution, please refer to the Binance announcement.
- 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. And on the redemption date, if you hold 110 BETH through a transaction and on-chain rewards distribution, you can redeem 110 ETH. Binance will cover all validator operating expenses for users on ETH 2.0 staking service.
You won’t be able to “unstake” your ETH until Ethereum 2.0 mainnet goes live. The 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. And on the redemption date, if you hold 110 BETH through a transaction and on-chain rewards distribution, you can redeem 110 ETH. Binance will cover all validator operating expenses for users on ETH 2.0 staking service.
Once you stake your ETH successfully, you can find your locked-up assets and rewards information ETH 2.0 Staking landing page.