The Ethereum 2.0 protocol has been in the news lately for all the wrong reasons. Vitalik Buterin, the co-founder of Ethereum and one of its most vocal critics, tweeted that one of the reasons for this delay was that he didn’t think the staking schedule was fair. While it may seem like a minor issue right now (and it is), this tweet highlights some larger issues that have plagued Ethereum since its creation: namely, how do they make decisions as a community?
According to a recent tweet by Ethereum cofounder Vitalik Buterin, the withdrawal schedule for staked Ether (ETH) in the 2.0 launch is likely “too long” and will be removed.
Ethereum (ETH) is currently undergoing a transition from its current proof-of-work consensus algorithm to proof of stake (PoS). This change will take place sometime in 2020 with the launch of Ethereum 2.
Ether: Users Are Furious
This new PoS algorithm is called Casper FFG and has been proposed as a hybridized version of Proof-of-Work (PoW), where users who hold ETH can begin earning rewards based on their holdings. The main advantage of this approach would be that miners won’t have an advantage over other stakeholders when it comes to mining rewards—miners are just another type of staker with an equal chance at receiving rewards based on how much they own. However, there are still some issues that need addressing before this system can go live as intended: namely, how long should it take for users who want their earnings?
If you have been following the Ethereum network, you probably know that Vitalik Buterin, the cofounder of Ethereum, has recently tweeted that the withdrawal schedule for staked Ethereum (ETH) in the 2.0 launch is likely “too long” and will be removed.
It is worth noting that there are three main ways to earn on Ethereum:
- Staking your ETH to earn more ETH;
- Mining ETH;
- Trading on decentralized exchanges like ForkDelta and IDEX (which also support ERC20 tokens).