Coinbase’s waitlist for Ethereum 2.0 staking is live.
Per a blog post shared with CoinDesk, Coinbase customers can now sign up to stake their ETH into the Beacon Chain smart contract, the coordinator and bridge between the old Ethereum and Ethereum 2.0, the network’s momentous migration to a proof-of-stake network.
This upgrade will do away with proof-of-work mining in favor of staking. Typically, you need 32 ETH to run a validator node for Ethereum’s new blockchain, but Coinbase will allow their users to stake any amount of ETH in their account.
Rhea Kaw, a senior product manager for Coinbase’s retail team, told CoinDesk that Coinbase users could earn up to 7.5% APR on their staked ETH, depending on the Ethereum network’s variable rate of return.
In exchange for the service, Coinbase “take[s] a commission on all rewards received, and the return rate for our customers reflects this commission,” Kaw said. Per Coinbase’s User Agreement, this staking commission is 25% of the rewards received.
Besides Coinbase, Kraken exchange also stakes ETH on behalf of their customers and is actively depositing ETH into Ethereum 2.0’s Beacon