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Ethereum Foundation to sponsor Eth2 staking projects

Ethereum Foundation to sponsor Eth2 staking projects

The Ethereum Foundation is set to sponsor projects that are working within the Eth2 staking ecosystem.

To that end, the non-profit has invited teams and individuals, particularly those that are building Eth2 staking tools and guides, to apply for grants. The invitation is open until December 22 for all projects.

“The point of the program is to help contribute to the long term health of the Eth2 staking and validator community,” said the foundation. “Ideas and projects at any stage of development are welcome: Idea phase; Proof of concept; Work in progress, and Fleshed out project.”

The foundation’s grants program comes as Ethereum is preparing to move from a proof-of-work system to a proof-of-stake mechanism. Proof of stake will arrive with the Beacon Chain, which is expected to go live on December 1, when at least 524,288 ETH is staked in the Eth2 staking deposit contract.

So far, however, only 95,200 ETH has been deposited in the contract. ETH holders are probably waiting to deposit until the last day to avoid opportunity costs. In other words, ETH holders have little incentive to lock their ETH now when they can utilize it for other activities, such as lending to earn yield or use it as collateral for trading.

Eth2 stakers can withdraw their stake only when Ethereum fully transitions to a proof-of-stake system, or once the Ethereum mainnet becomes a shard, which is expected to happen sometime in 2021

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Yogita Khatri