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.
The Eth2 deposit contract reached the required minimum assets (524,288 ETH) on December 1, 2020, which launched Phase 0. 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 Academy's 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 need the minimum stake, hardware equipment, and additional finances for 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
Login to your Binance account and select [Finance] from the top menu. Then click [Binance Earn], select [ETH 2.0 staking], and you’re there!
Please read the following instructions carefully before staking your ETH. Note that if you stake your ETH, you won’t be able to redeem it until Phase 1 begins. The lock-up period may exceed two years, so bear that in mind when you stake your assets. If you decide to stake ETH 2.0 on Binance, staking rewards will be distributed daily in the form of BETH, which is a tokenized version of your staked ETH. When Eth2 Phase 1 goes live, you can swap your BETH to ETH at a 1:1 ratio. Once Binance supports BETH trading, you will be able to trade or withdraw your assets.
Click [Stake Now], enter the amount you want to stake, and click [Confirm].
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. Binance will start distributing BETH and the first rewards directly to your spot wallet in January 2021*.
*For more details, please refer to the Binance announcement.
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.
Stake ETH on Binance Earn！