I'm understanding the logic that the more people gets into staking, difficulty will increase the same as PoW and rewards will get lower. That's just me and that's how I understand the rewarding system of ETHs staked 2.0 feature.
Before, the reward that's projected for a year of staking seems to be profitable. But for the upcoming years, the more that will join, it will get lower.
This is normal for staking. At least it's something I learnt from providing liquidity at defi projects. When too many people participates, the rewards gets lower. I get how big ETH 2.0 milestone is but I do not think it is profitable to stake uninterrupted for 2 years. The rewards does not justify the effort big time. Everyone is just joining because of how exciting it is for eth to finally moved from POW to POS consensus algo. I won't participate in the staking exercise as I'm not impressed with the rewards, it's too small.
Yes, that's why I've compared it with the difficulty for POW. When there are too many miners, the difficulty increases and rewards are being distributed to many miners and for POS, when there are many people that stakes, rewards will go lower. The 2 years was for the Binance's rule in staking.
I don't think that's a worth it stake if you want to make your ETH profitable. I'll just put it to my wallet and wait for the price to go up instead of seeing it locked for two years.
I'm understanding the logic that the more people gets into staking, difficulty will increase the same as PoS and rewards will get lower. That's just me and that's how I understand the rewarding system of ETHs staked 2.0 feature.
Before, the reward that's projected for a year of staking seems to be profitable. But for the upcoming years, the more that will join, it will get lower.
Yeah that's how it works. The more that participate the lower the reward goes. Bu the reward stays high enough to make it worth it. Right now the reward is VERY high because there's only a million-plus coins being staked. Once tens of millions of coins are staked the reward will be much lower, but you're still getting Ethereum for free just by staking so its well worth it.
Exactly. But for some people that have no choice and would take risk putting it to exchange like Binance that has a 2-year locked in period rule, that's not a fun thing to do. IMHO.
