10% of Ethereum’s supply is locked in Consensys layer deposit contracts which allow for ETH to be moved from the ETH magnet to the Beacon Chain so let’s read more today in our latest Ethereum news.
Ethereum’s consensus layer deposit contract contains over 12 million ETh and over 10% of Ethereum’s supply. Over 360,000 validators locked 32 ETH in the contract that will allow the funds to be moved from the mainnet to the Beacon Chain which is a running PoS version of Ethereum with which the mainnet is set to merge in the future. The deposit contract for the ETH consenSys layer known as eTH 2.0 exceeded 12 million ETH which is worth about $34 billion at current prices. This means that about 10% of the entire ETH supply is locked in the consensus layer deposit contract.
Despite the shaky price action and what seems to be a delayed Merge date the appetite to help secure the ETH network as it transitions from PoW to PoW continues to grow. According to Etherscan, the consensus layer deposit contract reached the 12 million ETH mark which accounts for more than 10% of the ETH entire circulating supply which represents a huge rate of growth as the deposit contract hit 10 million ETH. There are over 360,000 validators and each of them put up at least 32 ETH and the deposit contract yields an estimated 4.5% yearly return so the funds will not be fully releasable until the Shanghai upgrade which is slated for later this year.
The consensus layer deposit contract allows for ETH to be moved from the Ethereum mainnet and was dubbed the execution later by the ETH foundation to the Beacon Chain. The chain is a parallel running PoS version of the ETH blockchain which launched in December 2020. the Merge described the moment where the ETH mainnet merges with the Beacon Chain which marks the network’s transition from the PoW where transactions in blocks get validated via the solving of complex mathematical equations using the computing hardware to PoS where the transactions get validated y validators. The merge was thought to be on schedule and take place this June but was delayed.
Ethereum Foundation Trent Van Epps emphasized that not only the Merge will make the chain more secure, but it will also reduce the ETH network’s energy use by 99.95% and the Merge can reduce the annual issuance of ETH to a net 0% down from the current 3-5%. in addition to more than 12 million, ETH locked in the deposit contract for the Beacon Chain at 2.18 million coins have been destroyed since Improvement Proposal 1559 was launched in August. The upgrade sought to stabilize the network transaction fees and intruded a base fee ETH Burn.
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