About This Calculator
The ETH 2 calculator uses the framework provided by ConsenSys Codefi’s ETH2 spreadsheet. Community discussion for the Ethereum 2.0 calculator, its variables and assumptions can be found on the Telegram channel @eth2calculator.
The calculator on this page aims to simplify the front-end complexities of gauging an expected return when staking in the upcoming Ethereum 2 deposit contract. Users can select “Advanced Settings” to modify a number of variables that impact a validator’s expected return on investment.
This is the amount of ETH staked (invested) in the Ethereum 2.0 deposit contract. As per the Phase 0 specification, each staking node (validator) can only stake 32 ETH. Those wishing to stake more than 32 ETH can run multiple validators. For the purposes of this calculator for the benefit of simplicity, any amount of ETH can be used in the calculation. For those without the minimum 32 ETH requirement, third party services are being developed to allow for greater flexibility in the amount staked.
The price of ETH is used to provide a rough measure of the return on investment in fiat currency terms. This variable defaults to the current price but can be set manually under advanced settings.
Total ETH Staked
The total ETH staked (as a percentage of circulating supply) plays a significant role in calculating the annual interest earned on a validator’s stake. The higher the percentage, the lower the yield. Rewards are not issued until the network reaches genesis (524,288 ETH staked).
Avg. Network Online
The average uptime across all validators in the network. The protocol is constructed in such a way that at least 2/3 of validators will always be online.
The calculator assumes a constant price of ETH. The actual price of ETH throughout a validator’s lifetime is likely to vary considerably and so too will any fiat-denominated returns.
Total ETH Staked
The Total ETH Staked (as a percentage of circulating supply) is assumed to be constant. In the first several months or more, it’s likely that this metric will experience significant volatility before reaching a somewhat stable equilibrium.
This Ethereum 2 staking calculator does not account for any of the operational costs associated with running a validator. That said, the marginal cost of running an additional validator is low. Operational costs to consider include the hosting of a Virtual Private Server (VPS) or – for at home setups – the expense of buying hardware such as a Raspberry Pi and the associated electricity. The operational costs of running an Ethereum validator in Proof of Stake pale in comparison to an Ethereum miner in Proof of Work.
- Validator – a node running an ETH 2 client that validates transactions and earns rewards.
- Stake – the amount of ETH staked in the system (32 ETH per validator).
- ETH 2 – a multi-phase network upgrade of Ethereum.
- Phase 0 – the first phase in the ETH 2 upgrade that also introduces the staking mechanism.
- Deposit Contract – the smart contract on ETH 1 that accepts validator deposits.
- Circulating Supply – the total amount of ETH in circulation, sometimes referred to as total coins mined.
ETH 2 FAQ
Staking ETH is a one-way transaction meaning that deposits and rewards cannot be withdrawn or claimed. Staked Ether will become available in future phases of Ethereum 2.
ETH and “ETH 2” are used to distinguish between the current version of Ethereum and the ongoing Ethereum 2.0 upgrade. Both versions of Ethereum will use the same Ethereum (ETH) token.
Staked ETH is a one-way transaction and cannot be redeemed until future phases of Ethereum 2.0. For this reason, it is possible that derivatives will be created to provide liquidity and these “ETH 2” tokens may indeed trade under a new ticker.
The first phase of ETH 2 (Phase 0) is expected to launch in November 2020 following the successful operation of multi-client testnets. Future phases, (Phase 1 and Phase 2) may take 2 or more years to reach mainnet. Further release dates are not yet clearly defined.
Ethereum 2.0 Updates
With several staking pools and service providers coming online, which one should you choose? This guide offers a breakdown on all the available staking options.
The excitement around ETH 2 staking is reaching fever-pitch, but what are the risks posed to validators?
A glossary of terms relating to Ethereum 2.0 (ETH 2)