One of Ethereum’s most popular software wallets, MyEtherWallet is joining other crypto businesses by giving users access to Ethereum 2.0 staking.
Through a partnership with node-hosting service Staked, MyEtherWallet now offers its browser and mobile wallet users the option to stake ETH tokens into the Ethereum 2.0 Beacon Chain deposit contract, a smart contract that lays the foundations for Ethereum’s revamped blockchain infrastructure.
MyEtherWallet “users need to stake 32 ETH to participate. Staked will run a validator node for them, making it easy for the users who don’t have the technical knowledge to participate, so no further action is required on the user’s part,” MyEtherWallet CEO Kosala Hemachandra told CoinDesk.
Staking Ethereum 2.0
Staking ETH for the upgrade requires an Ethereum node, so Staked hosts this node and provides software for users to manage their deposits on MyEtherWallet. Staked and MyEtherWallet claim the service is non-custodial (meaning users keep control of their keys), though similar services through exchanges like Coinbase require relinquishing custody.
These stakers will become validators in the new network, the transaction processors who will replace miners under Ethereum 2.0’s new proof-of-stake design and who are paid in ETH for their services.
To become a validator, Ethereum users must stake at least 32 ETH in the Beacon Chain deposit contract. MyEtherWallet stakers will receive validator rewards in ETH, but those rewards cannot be withdrawn at least “until phase 2 (around two years),” Hemachandra said.
The Ethereum 2.0 Beacon Chain contract went live in the first week of November. After receiving enough ETH to kick-start Phase 0 of the migration to Eth 2.0, the Beacon Chain officially launched on Dec. 1.
Since the launch, a handful of exchanges, including Coinbase and Kraken, have announced they will allow users to stake through their exchange accounts. MyEtherWallet represents the first Ethereum wallet to open up staking to its users.