Ethermine, the largest Ethereum mining pool in the world, has announced today that it will be offering a staking pool service to its users. Users can earn rewards as low as 0.1 Ethereum, but not in the U.S.
Ethermine Staking will allow users to contribute as little as 0.1 Ethereum to a large pool of user contributions. These contributions will be staked together to create new Ethereum and earn it. This will occur once the long-awaited merge transitions Ethereum to an proof–of-stake model.
Ethermine Staking is not available in the United States.
Currently, new Ethereum is created by proof-of-work. This energy-intensive process allows miners to direct large amounts of computer power towards solving difficult puzzles. Ethermine allows users to pool their mining power and generate greater rewards for everyone involved.
The merger will stop the practice of ETH miners and replace it by a proof of stake model in which users can earn more ETH and create new ones by pledging large amounts. To start earning rewards, validators must pledge 32 ETH ($49,380 in writing) once the merger occurs.
Ethermine Staking removes the barrier to entry by allowing users contribute as low as 0.1ETH ($154.31 at time of writing), pooling these contributions and then staking them. The company, which is owned by Austrian company Bitfly, will charge a sliding fee for this service. This fee decreases as more ETH is pledged. Users who contribute less than 32 ETH will be subject to a 15% premium.
Ethermine has previously introduced Ethpool, a single staking platform that requires 32 Ethereum to be supplied, but charges lower fees.
Ethermine Staking is different from other ETH staking pool because it runs on ETH.STORE, a Bitfly reference rate that calculates a daily financial return for validators staking ETH.
“Basing a financial instrument’s conditions on ETH.STORE allows market players to factor in (and clearly identifie) risk premiums,” Bitfly’s lawyers at Stadler Vokel stated in a statement.
Ethermine Staking users can now see the average daily return of ETH validators around the world via ETH.STORE and decide if Ethermine offers comparable returns. ETH.STORE’s code can also be downloaded open-source.
However, users will not be allowed to withdraw their earnings until the merger is complete. Even after the merger, users will not be able to unstake Ethereum. This capability will be available during the Shanghai upgrade.
Shanghai’s exact date is yet to be set, but Marius Van Der Wijden (an Ethereum core developer) told Decrypt that he believes it will take place between 6 and 9 months after the merger, claiming “that is an early estimate.
Most Ethereum developers don’t think that far ahead at the moment. The network’s brain trust is currently focusing all their attention on ensuring that the merger goes smoothly.
