About Ethereum staking

1. What is Ethereum staking?

Ethereum staking refers to the process of using a certain amount of Ether (ETH) to participate in the Ethereum Proof-of-Stake (POS) consensus mechanism, which is used to attest transactions and create new blocks. Stakers can earn rewards in the network but must comply with network rules and protocols.

2. What is the minimum amount of ETH required to stake?

In the Beacon Chain phase of Ethereum POS, each validator node needs to stake at least 32 ETH to participate in attesting transactions and creating blocks.

3. How can I participate in Ethereum staking?

Participating in Ethereum staking requires owning a certain amount of ETH and selecting the appropriate staking option in an Ethereum wallet. Currently, most major Ethereum wallets support staking.

4. What are the rewards for staking in Ethereum?

The rewards for participating in Ethereum staking include execution income and consensus income.

5. Can I withdraw my staked ETH at any time?

During the Beacon Chain phase of Ethereum POS, staked ETH cannot be withdrawn at any time and must wait until the "Shanghai upgrade" (expected to occur in April 2023) to initiate a withdrawal.

6. Is staking ETH risky?

Staked ETH is subject to rewards and penalties based on the status of the validator node. Once a validator node has an error attestion or is offline, the network will impose a penalty. Additionally, staked ETH is subject to market price risks since it cannot be withdrawn until the "Shanghai upgrade" is completed. Stakers need to evaluate risks before staking, choose an appropriate staking method, and master corresponding risk management strategies.

7. What is the difference between joint staking and self-custody staking?

Joint staking refers to multiple stakers pooling their staked ETH together and having TokenPocket host the node to validate transactions and create blocks, and share the rewards. Self-custody staking refers to a single validator node staking their own ETH, independently validating transactions and creating blocks, and earning rewards. Self-custody gives users full control over their staked funds, while joint staking requires relinquishing some control over funds to the hosting party. Each staking method has its pros and cons, and stakers should choose according to their situation.

8. How do I withdraw from joint staking?

After participating in joint staking, there are two ways to withdraw: a. Use the liquidity fund provided by TokenPocket to withdraw as needed, based on a "first-come, first-served" principle due to limited liquidity fund amounts. More details can be found in the "Eth 2.0 Staking Rules". b. After the Shanghai upgrade, users can initiate a withdrawal request, and TokenPocket will send a withdrawal request to the beacon chain and queue for collection according to network conditions. Once collection is completed, the funds will be returned to the user's personal wallet address.my staked ETH at any time? During the Beacon Chain phase of Ethereum POS, staked ETH cannot be withdrawn at any time and must wait until the "Shanghai upgrade" (expected to occur in April 2023) to initiate a withdrawal.