Update 4/16/21: Ethereum 2.0 (ETH2) staking has started. Customers will be notified when they are removed from the waiting list and can receive up to 6%* APR as a reward. The waiting list is open for those who haven’t signed up yet.
Rhea Kaw, Senior Product Manager, Retail
Starting today, the waiting list for staking rewards with ETH2 has started. The Ethereum 2.0 upgrade will allow Coinbase customers to be rewarded using the second most popular cryptocurrency after Bitcoin.
With staking, customers can earn up to 6% profit if they simply hold ETH2. The reason why cryptocurrencies are rewarded while being staked is because the blockchain makes the underlying blockchain of those assets more secure and efficient to make it work.
By registering on the waitlist today, your customers will be in the first line to receive ETH2 staking rewards. Being rewarded with various cryptocurrencies is one of our biggest requests. We initially announced support for ETH2 last fall and are excited to be one step closer to delivering on our promise. We initially started offering staking rewards in 2019 with Tezos, and we used Cosmos last year. The ability to receive rewards by simply holding cryptocurrency is only possible through crypto-based financial services.
If you are off the waiting list, there is no minimum amount required for staking, and customers can convert, staking, and receive rewards for a portion of Ethereum rather than the entire balance. You can also check your rewards are summed up in real time through the Lifetime Reward Ticker on the Coinbase app or Coinbase.com.
Initially, it is not possible to sell or send a portion of Ethereum for which the customer has chosen to stake. However, Coinbase expects to provide a way to trade all equity Ethereum in the coming months. Coinbase will continue to share more information as ETH2 rewards become available. Customers in New York State are currently unable to sign up for Ethereum staking.
A quick guide to Ethereum and Ethereum 2.0
Ethereum was launched in 2015 and is currently the second largest cryptocurrency by market capitalization after Bitcoin. However, unlike bitcoin, it is not created as a digital currency. Instead, Ethereum was built as a new kind of global distributed computing platform.
Upgrading the current Ethereum network to ETH2 is an important and complex task that improves network speed, efficiency and scalability. Multi-year investments in the Ethereum community reduce bottlenecks, reduce fees and consume less resources (especially electricity).
To learn more about Ethereum’s origins and features, see the full Ethereum guide. Find out more about staking and trading here.
If you enjoy working on high-impact crypto priorities, check out all open positions here. We’d love to hear from you.
* The APR rate is based on the estimated Ethereum 2.0 network rate and will change as more ETH2 is staked. Customers can view the latest rates directly from their account.
Join Coinbase’s Ethereum 2.0 staking rewards waiting list. Originally posted on The Coinbase Blog on Medium, people are continuing the conversation in response to and highlighting this story.