Bitcoin and cryptocurrency exchange Coinbase has opened the waiting list for Ethereum 2.0 staking.
Coinbase customers will now be able to leverage the Beacon Chain smart contract for ETH 2.0 staking, CoinDesk reports.
The most recent renovation functions as a bridge from proof of work to proof of stake. While normally you should have 32 ETH, Coinbase users can stake Ethereums in their accounts.
Coinbase Retail product manager Rhea Kaw told CoinDesk that the amount of ETH users stake can generate up to 7.5% returns. But the payoffs depend on Ethereum’s volatility:
“For the service, Coinbase receives 25% of all rewards as commission.”
Along with the Ethereum staking option, Coinbase also brought the staking option to Algorand (ALGO), Cosmos (ATOM) and Tezos (TZX) tokens.
After Coinbase, Kraken is staking Ethereums on behalf of customers. At the same time, MyEtherWallet also supports staking.
Ethereum’s Big Step: Ethereum 2.0
The system behind Ethereum’s new design, Beacon Chain, was created in December. To have shares on the platform, users must deposit all their ETH in ETH2 (Beacon Chain ETH, or ETH).
After depositing in Beacon Chain, ETHs cannot be withdrawn for a certain period of time. According to Kaw, although ETHs cannot be withdrawn at the moment, Coinbase is struggling to bring this feature.
“All ETHs will switch to ETH2 after staking.”
So far, $ 5.5 billion has been locked in ETH Beacon Chain.