Bankless - Phase 0 ANNOUNCED - ETH STAKING IS HERE | Preston Van Loon of Prysmatic Labs ALPHA LEAK

Episode Date: November 4, 2020

🚀 SUBSCRIBE TO NEWSLETTER: http://bankless.substack.com/ ✊ STARTING GUIDE BANKLESS: https://bit.ly/37Q17uI ❤️ JOIN PRIVATE DISCORD: https://bit.ly/2UVI10O 🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/ 👕 BUY BANKLESS TEE: https://merch.banklesshq.com/ ----- 📢 DEVS OR BUILDER? APPLY TO FILECOIN ACCELERATOR FOR $20K GRANT  ----- GO BANKLESS WITH THESE SPONSOR TOOLS: ⭐️LEDGER - BEST HARDWARE WALLET TO SECURE CRYPTO https://bankless.cc/ledger-20 💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS https://bankless.cc/monolith 🚀ARGENT - OUR MOST RECOMMENDED DEFI WALLET https://bankless.cc/argent 🤖YEARN - YIELD-SEEKING MONEY ROBOT THAT FARMS DEFI FOR YOU http://bankless.cc/yearn ------ Phase 0 is HERE - ETH STAKING December 1st! What Happens on December 1st? Can we just send ETH to depositcontract.eth? What else do we have to do? How much ETH is required in the deposit contract? What are the risks? How do I avoid getting slashed? We bring Preston Van Loon from the Prysmatic Labs team to inform us of WHAT JUST HAPPENED! LINKS: Launchpad for Staking ETH and running an ETH 2 validator: https://launchpad.ethereum.org/ MAKE SURE YOU KNOW WHAT YOUR DOING. START BY WATCHING THE VIDEO on YouTube: https://www.youtube.com/watch?v=SkUiw1y3BHU&feature=youtu.be Ethereum.org Official Blog: https://blog.ethereum.org/2020/11/04/eth2-quick-update-no-19/ Deposit contract Etherscan address: https://etherscan.io/address/0x00000000219ab540356cBB839Cbe05303d7705Fa Follow Preston on Twitter: https://twitter.com/preston_vanloon Prysmatic Labs website: https://prysmaticlabs.com/ RocketPool Meet the Nation: https://www.youtube.com/watch?v=cqf6aJCFZn8&t=599s RocketPool Tactic: https://bankless.substack.com/p/how-to-mint-reth-on-rocket-pool ------ Don't stop at the video! Subscribe to the Bankless newsletter program http://bankless.substack.com/ Visit the official Bankless website for resources http://banklesshq.com/ Follow Bankless on Twitter https://twitter.com/BanklessHQ Follow Ryan on Twitter https://twitter.com/ryansadams Follow David on Twitter https://twitter.com/TrustlessState Follow DeFi Dad on Twitter https://twitter.com/DeFi_Dad ----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research. Disclosure. From time-to-time we may add links in this channel to products we use. We may receive commission if you make a purchase through one of these links. We'll always disclose when this is the case.

Welcome Bankless Nation. This is a special episode that we are bringing to you on the podcast. This is Alpha Leak. David, we only do Alpha Leaks when something Alpha happens. When we know that there is something that you want to know about and you need to react to quickly, a major type of event. What is this Alpha Leak today? Man, the Alpha Leak that we are talking about today is something that I think we've seen coming a long way, off, but that doesn't change how big of a deal it is today. Alpha leaks are when we just need to drop everything and get into the content production mode to talk about this. What's going on? And what is going on is the Ethereum 2.0 phase zero deposit contract has been announced. Starting on December 1st is the first, the December 1st could be the day that phase zero goes live. So there's a lot of conversations to be had about how to prepare for this. We all want to be a part

of the group that helps Ethereum 2.0 get off the ground. And so this podcast episode, this YouTube video, depending on where you're watching it, is going to help you understand what the hell's going on with the deposit contract with phase zero and how you can help grow Ethereum 2.0, starting on December 1st. It could be as soon as December 1st. Absolutely. We want you to be able to find the alpha in the midst of all this. So we're doing two things. First, we're going to give you kind of an overview of what is happening, what just went on, the significance of it, how you can get involved. Then we're also going to be bringing on Preston Van Loon, who's a developer at a ETHU client called Prism. And we go through and we ask a whole bunch of questions of Preston and we

get in depth into how to stake. How can you stake from your home? What are the risks? What are the rewards? All of those details as part of this Alpha Leak episode. as well. So with that, David, we should just get right into it. Man, it was like, I was having kind of a rough day, you know, not knowing who the president is and everything else, like this morning, when I woke up. Uncertainty. It's something that you talked about on Monday's posts on bank lists that, hey, like, this election could go one way or the other, but the worst outcome is uncertainty. And we got the worst outcome, didn't we? And then I got a very cheering message from someone I saw on Twitter that the ETH-2 staking contract has been announced. So the ETH-2 staking contract has actually gone live,

more than been announced, gone live with a specific block time. And we'll get into what that means. But high-level, this is what we've talked about for a long time, Dave. This is Ethereum's initial bond offering. So think of this. Ethereum right now is the largest non-eastern. sovereign global economy, a decentralized economy that the world is ever seen, and they're getting ready to issue a bond. That's how I see it. We talked to so many times before, David, about the triple point asset, ether being a triple point asset, like you can, you can use it as a commodity, pay for gas, you can use it as money as store value of collateral and defy. Well, this is that third point, right? This is using ether as a capital asset to actually generate.

returns for you. And it's finally going live. I feel like I've been here, like waiting forever, but it's finally happening. So, yeah, what, like, where were you? What was your take when you heard this news? Yeah, it happened this morning, except it started to happen yesterday and a lot of people that really pay attention to the intricate details of Ethereum started to figure this out. And people noticed this by the deposit contract.eith-enS address getting deployed to an address that had a bunch of zeros. And there is significance to an address that has a bunch of zeros because those aren't easy to find, right? And so there was a lot of some behind the scenes, like what's going on here, like deposit contract.e, that's a real thing. And then the next day,

the day after election day, which is the craziest time to announce the launch of phase zero, we get an official announcement from the Ethereum.org site, a new website on Ethereum.org that shows you how to be a validator on East 2. So all these things happen at once, which is... Did you predict this, though? I feel like a few episodes ago, you were just calling a date. I came pretty close. I came pretty close.

I predicted a week and a half ago that this last Monday, a date would be announced. And it happened on Wednesday morning. So I was off by two days. Not too bad. That is super close. That is not too bad. So what's been the reaction in crypto Twitter?

Can you talk about it? So like I put tweets out. I feel like you put you put tweets out. The entire community is celebrating this. This is Spencer Noon. He had to take like this is a big deal, I think, is basically the summary of what he's saying here. It was enough to get Eric Connor back on Twitter. Eric Conner's out of bed.

Welcome back Eric Conner to Twitter. We'll see how long he stays here. I'm not sure he's in the mood to say for the whole bull run. I probably thought it's just out. I'm glad Eric Conner's back to help lead us into Ethereum 2.0. He's a great community manager. If that's what he's here to do, then absolutely. Yeah.

So it's, and, you know, your question about how did Twitter react to this? It was mixed and that, you know, and it's a little bit frustrating because there's a bunch of, you know, very deep core theory in people that have been paying attention to this for a while. And to these people, people like you and me, Ryan, like, you know, at some point, this is just not a surprise. Like, we knew this was coming from a long way off. We never had any doubts that this would actually be here.

We did have doubts about when, but we also were able to talk to people. We've had Danny Ryan on the bankless program like twice in two different capacities now. We've had a bunch of just E2.0 talk. We've been seeing what's been coming, right? So we've known. Vitalik a couple weeks ago, he said, yeah, it's coming by the end of the year, right? Well, we've got two months left in 2020, of course. Right.

And so like some people are surprised, but like I think the people that are paying attention the most are just like, oh, yeah, like this is, it's very much. much later than we thought and now it's here. Okay. So Ethereum community is celebrating. I think one take on this is like for to me, you know, like being the space, being the space, mainstream media is not going to pick this up. Like they have no idea what's going on. Crypto media. Yeah, they'll pick it up, but there'll be a generalized crypto media. Yeah. Yes. There'll be a slant from kind of like is that big of a deal. I think this is the most significant event clearly to happen this year. Maybe it's the most significant event in the last five years.

Like, this is a big deal. Bigger than PayPal. Yes, bigger than PayPal. Like, you don't see it on, you're not going to see it on any of the mainstream, even if they weren't just covering politics 24-7 these days. This is below the radar. That shows how early we truly are. Like, this is a major event in crypto and no one knows about it.

Right. Importantly, and I definitely do want to get. to how and why this is so significant with Preston Van Loon here in a bit. But importantly, I would like to say that the 2017 bull market was pinned by ETH 2.0 being right around the corner. Turned out that was a little, we were disillusioned by that. That was a little bit of green. Three years around the corner.

Yeah. But now we actually have phase zero, right? We actually have staking. Staking was a huge bullish undercurrent for the last bull run. And now it's actually here, or at least it will be here on December 1st. All right. So are we just going to say, David, like, ETH at a price of $400 per ETH is just stupid, silly, hilarious? Yeah.

So like the market responded by going from $380Eth to like $400 Eth. What should be priced in right now is R.O.I from staking ether, ether lockup from staking ether. And also, I think perhaps even most bullishly, a complete reduction of execution risk for Ethereum 2.0 as a whole. And I made a graphic in a previous market Monday that talked about the evolution of Ethereum 2.0 and how people think that it's like, okay, first we do phase zero, then we do phase one, then we do phase two. And we're not even at phase zero yet.

So we two is a long way off. In reality, phase zero one and two have all been working in parallel. And the teams themselves have been working in parallel, learning how to work with each other. The progress, I think, is going to compound. So it's not going to be another three years between phase zero and phase one. I think it could, and Preston in this, in this episode, talks about his timeline predictions about where phase one is. I think there's overall going to be compounding progress on these fronts. That is the David Hoffman, Heath Bowl, that I know, coming out once again, good to see you.

I do agree with you that $400 ETH is hilarious. Right. I mean, so if you're looking for like, what's the alpha? What's the alpha in today's Alpha League. It's Heath. Yeah. The price of Eth is the alpha guys. That's the alpha. And we can talk about staking what the returns are, but I feel like in general, I don't think ETH as an asset and the execution risk diminishment that you were talking about is appreciated in the mainstream, of course, but let alone that, the crypto markets. So we will see how that feeds into price in the coming days. but can we talk about like what folks should do? So what the announcement actually means is that there is now a deposit contract for your

ETH, right? You shouldn't just send EF to that deposit contract. You have to set up a validator and go through the steps. You know, one way to do that is to look at some of the guides that we've put together on bank lists about doing this in TestNet. But there are some, like, you don't just get free money like in a yield farm. There's some responsibility that goes with an yield farm. This is not a yield farm.

This is the yield farm of all yield farms. And it takes some work. So you've got to get your hardware together. You have to understand a little bit about how the software works. You have to secure your private keys. There are some steps to this. But let's talk about that date of December 1st. So in the intro earlier,

you were talking, it looks like December 1st, but you didn't say it's absolutely going to be December 1st. Why did you, why did you hedge a little bit on that? Right. So there is a window of opportunity for many people to deposit 32Eath or more into the deposit contract.eath address. But we want a sufficient time for people to do that, right? And this is a big deal. Like we, this isn't some like random, you know, proof of stake chain that, you know, got spun up and doesn't really do much other than that. This is Ethereum, and this is also Ethereum 2.0. So we're going to, we're going to have a nice long window for people to deposit 32

eth in order to reach a minimum amount of ether required. Like we need some sort of like consensus as to like, yes, we're ready to start Ethereum 2.0 and we are signaling that consensus by having roughly half a million ether deposited into the staking contract. So we're taking our time to get to there. We have almost a full month of November to get to that point. And if on December 1st, we do cross that threshold of half a million ether, then we can have the security needed to get the Ethereum 2.0 chain up and running. If we don't hit that threshold by that time, it gets kicked out until we do hit that threshold.

So we have infinite amounts of time to get to that threshold, but we aren't starting until we do get to that threshold. And then if that threshold is met at December 1st or later, the phase zero of Ethereum will start seven days. after that threshold is met, right? And so that is what we can expect. That is something I think we will be frequently talking about on the bankless podcast, on the bankless YouTube. So, you know, prepare for tweets and information as to we watch this bar march forward into completion. David, probability that it doesn't hit 524,000 some odd eath before the date required to launch this December 1st. What's the probability on that? 15%. 15%. 15%. Interesting. Okay, I hope you are, uh, your, 85% likelihood that we get there before the, the, uh,

December 1st date. I hope your calculations are better than Nate Silver, my friend. Hey, my, my bankless predictions have been pretty, pretty local to the actual answer, so I'm feeling pretty good about it. Not bad. Yeah, I would, um, you know what? I'm going to, I'm going to, I'm going to raise yours. I think it's a 95% chance. I think, yep, I think it's absolutely, it won't take much, but let's talk about, I wonder if there's going to be a prediction market. I'm sure there will be. Absolutely. So with that, we're going to get to the rest of the episode with Preston Van Loon, where we go real deep on some of this eath staking stuff. If you want to live a bankless life, you need to get a hardware wallet. There is no alternative for storing your crypto in a self-sovereign fashion. That's why I have four ledgers that I use to manage my different crypto assets using the Ledger Live account as well.

Ledger Live is like your home base for managing your Ethereum, Defi, and crypto accounts. It does a really good job of aggregating all of your different Ethereum wallets if you are the type of person that uses more than one, but you can also add other cryptocurrencies like Bitcoin or Cosmos or whatever your preferred blockchain is, and then it will display an aggregate portfolio of all your accounts at the main page. One thing that Ledger is doing a really good job of

is enabling all the money verbs that me and Ryan talk about with the Bankless SkillCube enabled in the Ledger Live app. So right now in the Ledger Live app, you can buy, sell, lend, swap, and stake your crypto assets, which is doing a really good job of fulfilling all of the money verbs in the Bankless SkillCube.

Something that's new to Ledger Live is Ledger Swap, where you can swap assets one for another directly inside the Ledger Live application, ensuring trustlessness in your financial activity on Ethereum and on Bitcoin.

If you want to learn more about what you can do with a ledger, go to the blog post the power of ledger live on the ledger website. Or they share some of the more advanced things that you can do with your ledger that you might not have known about. There's a link in the show notes that will take you to the ledger shop where you can get your preferred ledger hardware wallets.

I personally like the Ledger NanoX, but I also have both. They're both great options. When you own a ledger, you own your own assets in the way that they have been designed to be held by the user and the user alone. So go get your ledger today to make sure that you are. as self-sovereign as possible. The bankless state in the nations are brought to by WIREN. WIREN is DFI's first self-building community-run project, which I just get really, really excited about. Wynne is a system that seeks out yield in DFI, and it does that in a number of different ways.

A very aggressive way is with the vaults where you can deposit your preferred asset of choice, and different DFI experts will come in and generate a strategy for what to do with your deposited token, right? it'll go find ways to get yield in that deposited token in Defy. For those who want to just earn yield on their stable coins, the Earn system is for you, where you can deposit your preferred stable coin, and Y-Earn will go and figure out which money market on D-Fi, and D-Fi is producing the best interest rate,

whether it's D-Y-D-X, it's compound or AVE. It looks around D-Fi to see where the yield is coming from, and it directs stablecoins automatically so you don't have to. Check them out at Y-earn.comin.com. get started and also check out the stats page to see what other people are doing as well. All right, Bankless Nation. We want to welcome Preston Van Loon, who is a developer on one of the most important clients of this new ETH2 network, the Prism client. Preston, how are you doing, man? Hey, doing great. Today is a pretty exciting day for us, so having a great day. It is an exciting day.

I feel like I woke up this morning, and look, we don't know who the president is, but we know when the EF2 launch date is, and I guess that's fine. I guess that's okay. One kind of equals other. So how long did you know that this date was coming, like this specific date that they were going to announce the date? Just a few days ago,

the people from the research team reached out to us and asked if we agreed with the deposit contract and if we were okay to go. And we said, yeah, you know, it's time. we're ready for this to be out here. So we didn't know, this is kind of news to us as a couple of days ago. So we weren't too far ahead of you guys. That is pretty cool.

So Preston, what are some of the things that got finished? Like, what were the boxes that got checked that made this, made us ready to have this, the release of the deposit contract? Yeah,

I think one of the, you know, like the most important pieces were that all of the clients were very stable. you know, Medasha, the TestNet Medoshas are current long running. TestNet has been suffering from finality issues for like three weeks now. It was like something like almost 5,000 epochs since finality. But we saw the light at the end of the tunnel.

Everything was stabilizing. And then just yesterday it finalized. So that was good. The client stability was good. The launch pad, which is how everything. everyone's initiating their deposits. It's kind of the canonical route to do it. That tagged their version V1.

Everything was good there with their audit and everything. Then the final piece was just to deploy it. I mean, the deposit contract has been audited and formally verified for some time now. Yeah, exactly, there it is. So I think those were the biggest blockers, are our clients stable. is launch pad ready and then is the contract ready. And this has a, this, this is the specific address on EtherScan where the contract is deployed. So like what was the, what was the process to get that working, right?

We kind of saw it move through the GitHub process, but like finally activating this contract and creating the public key for this contract, who did that? How did that come about? So this contract, we don't know specifically who deployed it. It was someone through Tornado Cash deployed it for us. And at first, some people were kind of concerned about that, myself included. But the bytecode on the contract is exactly what it needs to be exactly what we expected. It's the first instance of it being deployed.

There's really no risk in using this. So we just said, you know, reach out to all the client developers and all the key figures in E2 space and say, are you on board with this? And everyone unanimously said, yeah, let's do it. So that's how this became the deposit contract. So what's crazy is we don't really know who pushed the button, but it almost doesn't matter because this is all social consensus in action. It's a very interesting experiment in decentralized governance. I think we want to peel back the layers on what that means. But before we do, I want to make it very clear for listeners, what actually happened?

What was just announced? Let's get really concrete on the details. Phase one or phase zero, this is not phase zero. This is an announcement of phase zero, right? So what are the specifics with what specifically got announced today? So we got announced today was the deposit contract address, so where deposits will be sent. The minimum genesis date, so a refresh, to start EF2, we need 16,864 deposits or something like that. But we also need, we have set this minimum genesis time so that if we got all those deposits today,

it would still, we would still wait until December 1st at 12 p.m. UTC time for the chain of lunch. So that's, that's so we have enough time to prepare. Everyone has enough time to get their clients online, et cetera. Additionally, if we don't get the 16,000 validators before December 1st, we still have a baked-in one week delay, seven days delay. So the important thing is now we know or have a really great idea when the chain is going to start. And then the version one of the spec is now officially complete. Those were the last two things that we're missing,

were the contract address and the minimum genesis time. So that's what we're looking at here, right, Preston? So this is the ETH launch pad that you were mentioning earlier. There's this cool graph. It just reminds me of like the, like the, the, the battle in Biden v. Trump to get to 270, um, electoral college seats here. We're trying to get to 5,000, uh, or 524,000 some odd Eth in here. And what's happening?

So this bar is increasing. Looks like we've got, uh, four point, you know, 4,600 or so in 45 Eth right now. What's happening? So that, that, that ETH is being deposited. but validators aren't starting yet, correct? Yeah, that's right. So you have validators who've sent their deposit with the metadata and the 32E. So they're registered in that initial Genesis set,

but clients aren't going to do anything with this data until, I mean, it's being monitored, but until this far reaches the end, You don't need to have your client on at all. You don't have to do anything once you see your deposit, just kind of wait for this to happen. And like I said, we'll have at least seven days of lead time. So when the bar becomes full, we're going to start seven days later or December 1st at 12 p.m.,

whichever comes later. Very cool. So I want to go back to the conversation of like the deposit contract and how it got deployed to that particular address. That particular address has a bunch of zeros at this. start of it, which is a hard thing to find. I think, like, in order to find an address like that, you actually, quote, unquote, have to mine for it, as in you have to run a lot of intensive computation to try and find an address with a bunch of zeros. It's a little bit like proof of work.

So there seems to be some sort of forethought in planning that went into getting an address that has a bunch of zeros in it that's really easy to identify because it's really hard to find an address with a bunch of zeros. And you mentioned that somebody put in some ether into a tornado to withdraw it to a clean address which spun up this contract. And you said that the byte code matches. And what that, what I think that means is that there's a, there is a canonical, probably somewhere on GitHub, I'm assuming, a, of a, what a deposit contract is. And the bite code that is deployed by this contract matches that. And so that's how we have assurances that this is actually the real thing. And this isn't like some like, you know, rogue rug, rug pull

contract that, you know, somebody just randomly deployed. And then it seems to be that the Ethereum.org website, which Ryan just had up, which has, you know, 4,000-something ether deposit into it, that is what at least the Ethereum.org website is pointing to as what we are assuming to be the canonical version of the deposit of contracts. So this is all kind of like this experiment in like decentralized coordination. It's not technically official, but it's only official because that's what everyone seems to be calling official. That's absolutely right. And And good point about the mining the address. Someone put a lot of thought into that.

To get that many zeros takes several days of hashing probably. We did the same thing for, I think for our topaz test net, we mined a contract address with enough zeros in front of it so that it became easily recognizable. And now we can count the zeros. And we know it's 219 AB5. I mean, it's not that hard to remember. and we know that with that you have some probabilistic security. It gets harder to mine an address,

the more prefix characters you're looking at. Additional value is that zeros are less storage on E2, so you might say actually save some gas with having so many prefixed zeros. So that's a kind of cool benefit. Yeah, wow. That is one of the best pieces of Ethereum trivia I've ever heard of in a while.

Okay, so between now and December 1st, we expect Ether to get deposited into the deposit contract. If we hit that threshold before December 1st, great. That's fantastic. That means that Ethereum, the phase zero could launch on December 1st. What happens if, and you said, like, if we don't get to that point, we have a seven-day period that will, and in that seven-day period, if once we hit that threshold, we will start then. What happens if we don't get that ether threshold inside that seven-day period? So the seven-day period starts when we hit the threshold. So let's imagine that we hit the threshold on November 30th.

Well, then we're not going to start until December 7th because we have to have at least the seven days lead time. But if we were to get all of our deposits in today, well, we have a lead time until December 1st. So it's at least seven days. So if you want to put into simple terms, we'll start on December 1st or seven days after that 16,384th deposit, whichever comes later. Okay. So there's no actual deadline. We have years and years and years to get this much ether if we ever needed it for whatever reason. And that's a, I think that's an important point to make, David, because we were talking.

about December 1st being the launch date, right? That assumes that we hit this threshold here, of course. If we don't, we don't really know the launch date. It could be beyond December 1st. So I guess the big question, like everyone's going to be, you know, checking this, refreshing this multiple times a day, I'm sure, Preston. I guess the big question is, are we going to hit it? Like, how much of ether supply is that? It's like about half a percent or so? half a percent. So what's your take, Prest?

And you think we'll have any trouble hitting that? I think this brings kind of an interesting chicken and egg problem because there's no incentive for me to deposit early except maybe I want a specific

validator index. But if I deposit now and it changes in start until December 1st, I have opportunity loss. I could have been doing something else with that, Eath. But I also want to be in the genesis state because I don't want to then be in the queue.

I want to start right away. So I think what we're going to see is it it'll get it'll slowly move towards the end and then it's going to rapidly move towards the end, this green bar that is. Is there is there any like chance of being able to incentivize people with POOP tokens or maybe being able to like NFT a very low number of validator slots? Is that something that is possible? Yeah, definitely. And I'm sure the po-up guys have something in mind. I don't know what exactly, but definitely having an NFT to your account that represents that you are part of the validator Genesis set would be really cool to have, especially because it's such a finite set of people. It's something to be proud of, I think, if you're one of those early adopters who wants to show off that you are part of E2's Genesis. That's really cool.

I want to be a really cool poach. Yeah, David and I often talk about Ethereum as a digital nation. This is kind of your patriotic duty, you know, to, you can be part of the birth of this entire initial bond offering on Ethereum. This is like a, I mean, this doesn't happen. This is like maybe once in a lifetime type of opportunity if Ethereum becomes what we all think it might be. So you want to be in there. There's like this social kind of pressure, right? Just be a good citizen.

All the poor kids are going to do it. All the cool kids are going to do it. You want to say you were there. You want to tell your grandkids. I mean, who knows what this Ethereum network could be. So there's that. But there's also, can we talk about like why economically I might want to put my funds in their post launch?

The launch pad has this great section on staking rewards, which I think makes it pretty simple. But there's a downward sloping curve here, which basically shows the amount of annual return you received denominated an eith based on how much total eith is contributed to the staking the validator contract, how much eph is staked. So how do you kind of describe or characterize, I guess, this curve, Preston? This curve obviously is diminishing as the number of validators join the active set. As you can see, this. This is designed to incentivize those early adopters and give people in there early.

A great part about this is you kind of have an expected guarantee that you're going to be earning this APR for some time because E2 has a rate limiting function where only so many validators can join per day. And initially that value is going to be 900 validators per day. So you're going to see this slide move slightly to the right by 29,000 ether per day, which is, you know, relatively slow. That would take a pretty long time to get increased by one million or so. So you like to get all the way to this 5% APR,

that's going to take a super long time. Wow. Okay. So that I did not know. So two things there. So first, for people who are listening this on a podcast, you can check out offline launchpad.et.ethorium.org, see the chart we're talking about.

but at the very start, if there's only 500K or so, half a million, ETH in the deposit contract, annual returns are like 21%, 21.6. And that drops. If denominated, of course, which is better, right? That's what we want. ETH's money, maybe. All right. But if there's 2 million ETH, then you're making less.

It's 11% APR, ETH denominated, ETH is money. If you are, if it gets at the $5 million, then it's, at 7% kind of drops in that fashion all the way to, you know, this kind of stops at 10 million eat deposited and you're 5%. But one thing that Preston just said there that I'm not sure I picked up on fully first time around is that you want to be first because after launch, it sounds like what you're saying is there basically the contract only lets in a specific number of validators a day, like 30K worth of ETH per day. So it's not going to get to that. $2 million, $5 million, $10 million overnight.

That's going to take a long time, which basically means if you're early, you're guaranteed to have the higher side of this curve from a return perspective. Did I understand that correctly? Yeah, that's right. So the rate at which the system allows validators in changes, depending on the number of validators.

But until we get, I think, around half a million validators in the system, We're only letting in four validators per epoch. And so it's 900 per day or 29,000 ETH per day. So the slider on the sliding graph will move pretty slowly, at least at first. Okay. So we deposit ETH into the deposit contract. Then what? We're starting to see it funnel in right now.

So what happens? Right. And let's be clear. When we talk about these returns, this is not a yield farm. This is not a defy protocol on Ethereum. This is Ethereum itself. And so when Preston, when we send like 32 ether to the deposit contract, what else are we committing to doing when we do this?

So, yeah, that's right. This isn't free money or, or, you know, you have to, you actually have to do work. You have to run your validator. You have to keep it online. And, you know, that in itself is not very expensive, but it's not like a set and forget kind of thing. You do have to monitor it and keep it going because you're only rewarded for the time that you're online and participating.

So if that's new to you, definitely check out one of the test nets so you can get a taste of it without having to put up real money. But yeah, you do have to do some kind of work. I mean, running your validator is pretty simple. right now, if you send your deposit now, there's nothing you have to do until the chain starts. And like we've been saying, you'll have at least seven days notice of when the chain is going to start. Okay, so we send 32 ether to the deposit contract and we're ready to run our validator. How do we connect the fact that we sent 32 ether on Ethereum 1 to our Ethereum 2 validator? How do those things get bridged?

So when you send your deposit through the launch pad, you will take. get back some, you'll get your private keys for your validating client. You'll get like, you'll get a backup pneumonic phrase. So you're familiar with any kind of accounts on it there. And you have this like 24 words that make up, um, a recovery key, basically. And then you'll get your deposit data, which is some metadata you have to send with your deposit that tells ETH2 system associate this 32Eath deposit with this specific validator public key and its parameters on where they're going to allow withdrawals to happen. But the key part is you have to send that metadata and you have to send 32E or your deposit will be rejected basically from the deposit

contract. Okay. So is it bad or incorrect to just like send 32 ether to the deposit. contract address or does it have to get funneled through the right route in order to have it be like registered with Ethereum 2.0? You can, well, I would recommend, highly recommend that everyone use the launch pad. That's the easiest way to do it. But if you come up with valid deposit data any other way, whatever other tooling, that's fine. You just have to send the metadata, the deposit data with your deposit to the deposit contract. I was looking at the contract earlier today. I've already seen a few people send 32 ETH with no data.

So that got rejected and, you know, the funds refunded back to that person. The transaction was failed. So you can't just send money there. You have to come with the metadata. You should use this process, especially with the launch process. It's what it's there for. And with this kind of thing, you want to make sure. sure you're doing it, right? Because if you, like, in all things, crypto, if you make a mistake

is a high chance, you're not going to be able to undo that mistake. Right. Don't be a cowboy. Don't be a cowboy followed the directions. Right. Exactly. Yeah. There is, you were mentioning earlier, Preston, you know, a way to do this if you're unsure is to actually try this in TestNet first, right? Like, so Mean Net is real money. You don't want to mess up with it. And then the Dasha TestNet is going. It's live. We actually put together a, guide on bank lists, that consensus, the folks behind the launch pad helped write for us with the EF, a guide to becoming a validator. That's a good guide to go through just to understand the

steps. And we're actually going to be updating this for Mainnet too. So you understand that. And like going through the launch pad is definitely the best way to go. But even before that, I mean, folks need to figure out how exactly they're going to stake, right? So we talked about in this guide what sort of hardware you might want to use if you're going to a hardware route. And I think people can understand that. But there are other routes that they can go through to, right? Preston, what are some of the main, I guess, staking routes? You do it yourself.

You bring your own hardware. Are there cloud-based solutions? Are there other alternatives for staking right now? So right now, yeah, most people, I think, are preferring a hardware approach. This kind of takes the decentralized part to heart. So you're running on your own bare metal in your home or office or whatever. And that's great. It works really well if you know what you're doing.

It may not be for everyone. I mean, you have to make sure your Internet's going to be online all the time and that your power doesn't go out, things like that. because you want to earn the maximum. You want to be online all the time to be earning rewards all the time. But you can use the cloud deployment. That's totally, totally fine. The risk with the cloud deployment is now if we see a lot of validators running in

DigitalOcean, for example, you could see an outage on DigitalOcean, which takes off a large number of validators. And when a large number of validators goes offline, that can affect finality. And when finality is not happening, penalties start to increase exponentially. And it kind of snowballs into this kind of bad state that we don't want to be in. And if you look at Medasha, how it's been operating for the last three weeks, that's basically what happened. I mean, it wasn't a cloud outage, but we had a large group of people basically abandoned or turn off there. and then the network got stuck in the state,

not finalizing, it gets worse and harder to process and so on. So keep that of mind if you're using a cloud provider, make sure you either run on a smaller one that's a virtual machine or you're running your own hardware, or you could consider running with some kind of staking pool. There are a number of them out there who are planning to have staking services, either when phase zero launches or shortly after.

And that may be something for you. Just make sure you do your due diligence there. I can't advocate for any of them in particular, but I do know that the protocol itself is designed so there's no delegating of your stake. There's not delegated proof of stake. So you may be giving, it may be a custodial solution that you're going with.

So just make sure you understand what you're getting into if you're choosing a staking service rather than running it yourself. I think bankless at some point will put together a guide to help people even evaluate staking services. But if we stick with the hardware approach, right? First, that might be the way to kind of get started. Let's say I've got a spare MacBook Pro. I've got like cable internet, that kind of thing.

And I've got some EF. How many validators can I run on one spare MacBook Pro with, my, you know, the consumer grade and I've got like a home internet connection. Can I run a bunch of validators on one machine or is there some limit? 20, 2018, 2019 MacBook Pro with, you know, a typical hard drive and CPU. Yes. Yeah. And that's a great option. First of all, because it has a battery. So if your power went out momentarily, your computer's not going to restart or anything. So that's great. in terms of the number of validers you can run

we think that from a software perspective there's not there's not really a limit we've run as many as 300,000 on one laptop which is like an insane amount in the real world so in terms of like hardware

is it going to be able to keep up with that many that's totally fine for as as much as you can imagine your your validating process can operate on multiple keys. I think Lighthouse supports it other clients supported, of course, Prism supports that.

So that should be no problem at all, no factor at all. The only thing you're completing now is like, oh, you have all your ice and one basket, so your laptop could be you know, everything's on that one laptop. So maybe you want to distribute it if you're running like hundreds.

Maybe you want it on different machines, but for a technical perspective, it's totally fine. So you've got one power supply course, like one hard set of hardware components, one internet connection. Just a quick question. Then I want to ask you about slashing because that's part of the risk, the risk. But so let's say, you know, let's say I guess I am I am running this setup. How am I securing my private keys, right? So by the way, all of this is so cool because it feels like the old days of like mining GPU from your home, you know, like we can do it again. We're minting money in magic internet,

again back in the old like Bitcoin days back in the old Ethereum days when it launched. There's like something so pure about running your own hardware and getting started that way. Something so exciting about it. But anyway, so where could I store my private keys? Can I have a different, I guess, withdrawal type address? Like I could keep that on a ledger nano or something, some sort of hardware wallet. So if it's, if my machine is in my office or something, like I could keep my private keys totally separate from it, whereas there a component that needs to be like, oh, he's plugged in

and like a private key live validating the entire time. So with these two, you have two set of keys. You have this hot key, which is what you're using to sign all the work you're doing as a validator. Then you have this cold key, which is where when you do a withdrawal, your funds will go to this withdrawal account, which is this other, you know, separate account from your validating key. and when you go through the launch pad, you'll give back that mnemonic phrase, the 24-word phrase, and then you're validating private key, which is derived from that recovery phrase, but also your withdrawal account is also derived from that mnemonic phrase. So once you get that mnemonic phrase, you want to put that into some kind of cold storage,

if that's writing it down on a piece of paper with a pen or printing it or encrypting it and filing it away somewhere, that's the one you want to really keep safe because if your keys were to be compromised, I mean, what an attacker could do is limited with your hot key, but if they were to get access to the cold key, they could then transfer the funds eventually. Transfers aren't available in zero, but that's the one you want to keep super safe. cool. If somebody comes in and snatches my laptop with my validator on it, I'm not losing my private withdrawal keys. I'm not losing that storage, cold storage piece. Because I'm doing, yeah, lost my laptop. And your hot keys, your hotkeys are always encrypted at rest. So you have to,

every time you start this process, you either type in your password or load your password in somehow. but if they were to snatch your laptop, they close it. If they were able to get extract the files off the disk somehow, they're still encrypted at rest. So they would then again have to know what your password is specifically for those hotkeys. Preston, the thing that I think is the biggest, not the biggest risk, but the most generalizable risk is slashing risk, right?

And that's just something that everyone is going to be exposed to. So talk about the parameters around slashing risk. Like how does one get slashed and then how bad is it if they were to get slashed? Right. Slashing is a mechanism in ETH2 to discourage a certain type of behavior which could confuse or delay finality in E2. So for example, if one of the roles you have as a validator is you're attesting to the state of the world. You say it. This is my view of the blockchain.

What I think the head of the blockchain is, I'm going to sign it and send it out, broadcast that to everyone. That gets included in the chain. We use that to determine finality. What's the head of the chain, the canonical chain? What should we be building on?

Now, if it's your turn to a test and now you start saying two different things, say, oh, I think block B is the head of the chain, but also block D, which is on a fork, now you're going to be confusing the system trying to mess it up. That's typically a behavior you're doing on purpose. Right. That's malicious behavior.

Yes, exactly. That's called a double sign sometimes, right? That's a double sign. There's also double proposals. If you create two different blocks for the same slot, if you're assigned to be a proposer, that's an issue. And so how do you have? this right like we just said it's something you do on purpose but it can actually

happen on accident if you're running those keys those validators into separate processes the beacon node may determine that the head of the chain is block B on this process but on another process block B so you actually might accidentally be producing that scenario so the the key thing you want to keep in mind is that your hotkey should only be active on one machine at a time, running one process at a time. If you're thinking about an automated failover, don't think about that thing about something else. Just have your monitoring in place. And when your internet goes out or whatever, do some manual interaction to fix it.

Don't try to do something clever because you're probably going to mess it up. And that's how you're probably going to get slashed. If anyone's getting slashed to you, that's probably what's going to happen. So yeah, I mean, it's really easy to not get flash to not have this like operating. Do the clients provide some sort of double sign protection just a little bit to help with that? Yeah, we do. Yeah, most clients do, but it's not bulletproof. So don't rely on that entirely.

You could think like, oh, if these two, for example, if these two machines are running on opposite sides of the earth, I mean, they may not receive each other's message by the time they already broadcasted theirs. and by then it's too late. So, yeah, really just keep your machine with the keys running just the one key, one machine, you know, keep it safe that way. And what we're really talking about when we're talking about running two machines with the same hotkey is we're talking about something relatively sophisticated when it comes to maintaining uptime with our validators, right? And this probably is not really applicable to like the average amateur validator. This is really for people that they have a system, a really. redundant system where if one computer goes down in one household under one internet connection,

then they have the system that spins up another computer that has claims on a similar amount of validators that starts signing in a different location, different internet, and that maintains uptime. But from what I understand about, to slashing in the event of inactivity, just being absent, you're actually not punished all that much, at least in the short term. Can you kind of go into the economics behind slashing as a result of downtime, which might happen to almost perhaps everyone, depending on how long we're talking about? So we think of that as a liveliness penalty.

It's a little bit different than slashing, but it is essentially equal to the amount of if you would have earned if you were online. So if you think about if I was offline for 24 hours, I lost 24 hours worth of opportunity loss there, but I also lost, you know, 24 hours value of eth. So if I'm making, let's just say, 0.1.Eth per day, that's not the amount. But if I'm earning 0.1.Eth per day, and I had 32-Eth, at the start of that day, I would have 31.9Eath at the end.

And so it will just take me two days to get back to basically, or another 24 hours of being online to get back to 32. and then I'm a hole again and it's fine. So if you're thinking, oh, I'm going to go on a three-day vacation and I'm worried about my laptop dying and it goes out, you're going to be fine. Like, it's not going to be the end of the world, so don't stress about it too much.

That's just like opportunity cost, right? No, it's two-x opportunity cost. Yeah. Well, it's opportunity costs and your balance does diminish. You do realize a lot in addition to the opportunity loss. So it's kind of like a double, double loss there. But it's not that big of a deal. So if you're worried about going away from your computer

for extended period of time, you'll be fine. I wouldn't worry about it too much. Yeah, so let's think about it this way. Say like the average individual, you know, amateur staker is live for 99 out of 100 days. That means like maybe on average three days out of the year, maybe four days out of the year they are receiving this offline penalty. And so their rewards go backwards by four days when it could have gone forward by four days. And so like by the end of one year, they maybe have like, you know, out of 365 days in a year, there may be behind by eight

days of rewards, which in the grand scheme of things, not that big of a deal. Like, congrats, you were able to go on a four day vacation without having to stress about it. Yep. Yeah. The only Yeah, the only thing to, I guess, worry about or consider is being offline in an event where there's no finality happening, because then those livenous penalties we're talking about start to increase exponentially. So if it's been two weeks since finality, the penalties for being offline are so much more than they were if the system was healthy and finalizing. So if you're on vacation. That's almost a different scenario, right? That's like it's not just one guy going on vacation.

It's like everyone parks their hardware in some data center and the data center goes dark. Or like everyone's on the East Coast in the U.S. and East Coast gets knocked out by something. Yeah, this is an anti-centralization mechanism, right? And pro finality. It only happens when two-thirds of validers can't agree on the head of the chain, basically. So you'd have to see about one third of Valiators stop participating for this event to happen.

And we expect that to never happen unless some like extraordinary event occurs, like a whole data center or a whole nation going offline or something like that. Okay, so those slashing fees if you're off the internet, not too bad. I almost think about it as like there's like misdemeanors and felonies, right? So like you get slashed because you're offline. It's a mystery ticket.

Yeah, parking ticket. Slap on the wrist, right? But if you double sign, that's a big penalty, isn't it? Yeah. That's a bad one. That's a similar definition. And you get thrown in, like, it's the harshest, the harshest penalties the nation can devise. All right.

Okay, so one thing, while we're talking about the risk, so what the risk we outlined for kind of slashing and going offline, we're right, we're there. But there's another risk in just even venturing into this new territory. And I want, I think we want to make this clear for bankless readers, like, or bankless listeners, we're all on this journey west. We always say it, end of every, every episode. You could lose what you put in. This is, this is crypto, it's dangerous stuff.

If you're deciding to stake your ETH, right, in this new ETH 2.0, it's one direction. There's no coming back. You are effectively burning your ETH on the ETH main chamber. and you're you're cashing that burned eith into eith 2.0. So you're effectively taking a bet. There's a one-way bridge and there's a land over here that you're in, that nice city you enjoy because you're, you know, a member of the city Ethereum.

And then what we're talking about is, oh, we're going to go build a better city across this bridge. And you are literally taking your stuff and crossing the bridge. And it's, you can't ever come back. It's just one way, right? I think that's what you're getting at with your tweet, Preston, because you said depositing ETH into ETH2 deposit contract is effectively a burn. And you just wanted to remind folks of that.

Can you dig into the risk there? Right. So, yeah, it is essentially a one-way transfer of ETH from ETH1.x to ETH2. and you really won't be able to do much with that ETH until ETH 1 and ETH2 merge together. So you are kind of locking yourself into this time period where you're on ETH2 and you're not going to be able to transfer it back and you're not going to be able to move it. You're kind of signing up. It's kind of a long-term commitment. And I think that phase 1.1.5,

or even phase one when transfers might be enabled, it should be coming towards the end of next year. I mean, it's not that far out. Some people have said two years, which is, you know, it's still a possibility, but I am kind of on the optimistic side going forward is that, you know, it's about a one-year commitment. But you have to be prepared that if you want to be one of these early adopters,

that there is no bounded limit. There's no hard date when you're going to be able to move that, ETH. So, yeah, it is an adventure and it is kind of, you know, going into the Wild West here, and it has some uncertainty. So you have to be prepared for that. Preston, the next conversation comes about the mechanisms of producing an alternative to this in an off-chain environment. And a lot of people have brought up the topic of Beacon, Heath, or Beath or Beth, as like, well, because of this one-way bridge, we can actually, like, centralized services like, I don't know, Coinbase or, you know, finance can offer you to purchase

your beef and, you know, we have a off-chain, like trading market for a, for this beacon chain ether. And, you know, there's some people from the Ethereum side who think that this is not really that big of a deal, not really going to happen. And other people from the, from, I don't know, generalized crypto Twitter that think that this is actually, you know, totally going to happen. and it's going to generate two separate ether prices, two separate assets. Is a separate beacon chain ether asset with like a separate ticker symbol on centralized exchanges? Is that a big deal?

Should we be worried about this? I think it's good to have some healthy skepticism of that. These are two blockchains running in parallel, right? It's not a fork. It's not, eth one with some new features is a completely different blockchain. running in parallel. So whether or not it's another asset, I don't know. I feel like it's not because, you know, for one, in phase zero, there are no transfers,

right? So you're not going to be able to give up ownership of this ETH to some, to anybody to sell it in phase zero, right? So I don't know what exchange is going to, I mean, unless the exchange is like kind of issuing IOUs and they're holding the eth on eath two themselves. That's a little different. It's kind of like a derivative, I suppose. But, yeah, I don't see this that big of an issue,

ultimately because these two blockchains running in parallel will be merging soon, and then there's, again, only one eath. So, yeah, I don't really see that as too big of a concern, but definitely a good topic to talk about and keep talking about in the community. And, yeah. It's also the case that it's still one eph. Like it's not like there's a total separate supply schedule here, right?

We're talking the same Ethereum, the same sort of issuance policy, right? I mean, effectively what you're doing is you're putting it almost in like a bonding mechanism. It's just you don't know the end duration date, right? If you put your US dollars in a bond and that bond is maybe two to three years, does it become something other than like US dollars in a bond? I mean, it's just staked, it's staked U.S. dollars. And this is just staked ETH. So, yeah, I don't know.

I guess people are thinking about it in maybe different ways. And I wouldn't be surprised to see different asset with a different kind of price point. But at the end of the day, I don't know why you would call it a different asset when it's got the same issue in schedule. It's like the same thing, essentially. It's just living in a different place, right? It's like when I move my ETH to Coinbase, it doesn't become Coinbase, ETH. It's just, I've just moved it to a different network, right?

I don't know. Right. And does rap ETH trade differently than ETH? I don't think so. Like, it's the same, you know? Exactly. All right, Preston. This has been absolutely fantastic.

I really appreciate you hopping on the call with us and getting us informed about ETH too. This is exciting times. And, sir, you have been at the spirit. head of this effort. So on behalf of the Bankless Nation, thank you for help building out this new entire city for us to move to. Of course. Thanks for thinking to me. And you know what? It's an absolute privilege to work on this stuff. So I'm really excited for Mainnet to come this quarter. Just excited for the future. And thanks for having me. As we're excited to stake, but you pressed in was one of the guys who was decided to build on Ethereum, building to

before while everyone was saying it would never ship. And I think they're still saying that. So what happens? Left a job at Google. Let's a job at Google for Ethereum. Super cool, man. It takes believers like that to make this dream of reality. Super cool.

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at monolith. X, Y, Z. Man, Ryan, I'm just so excited to get the ball rolling on here. We are about to enter the golden age of Ethereum. It feels like, dude, Preston Van Loon is such a trooper. He's been grinding since day one. So tip of the hat to him. And, you know, there's a, so many people have put so many hours of labor into

Ethereum 2.0. So I think we want to talk about, like, what does that actually turn into? And, you know, some people may, may consider this a controversial, statement, but like when you, when a bunch of very, very smart, dedicated people believe in something and pour an absolute magnitude of man hours into something, I expect that that thing would be valuable, right? And this is something that I'm going to be looking to the secondary markets to really signal if that is a valid take or not. And this is why we think ether is undervalued. And interestingly, Ryan, is that, you know, there's a bunch of conflating data here. Like we're also

looking at the crypto markets during the U.S. election. Yes. The SPX, the S&P 500 index is also moving bullishly upwards. But like we had this on November 3rd election day, we had that what I was talking about earlier, which was the movement of the EMS domain deposit contract.eath. A lot of people started to figure it out. And Ether price jumped from 380 to 400, right? And Bitcoin price jumped from 13,700 to 14,000, right then and there. And that, to me, like, crypto markets have actually been uncorrelated the last two days. And so to me, that signaled that Bitcoin price moved upwards on the rumor of phase zero. So you think Bitcoin is maybe going to follow Eith a little bit.

And I showed some signs of that yesterday, right? Starting yesterday. Yeah, showed some signs yesterday. And then I got into a debate with Nick Carter and he was like, you know, what did he say? I said like, you know, the reason why Bitcoin is moving on to 1400 is because of Ethereum 2 deposit contracting goes like, why would that impact Bitcoin? And I said, well, I don't really know, but like look at the charts.

They're happening at the same time. And then this got repeated again today where we, first it was a rumor and then it was the official Ethereum.org site and all the people in who are working on. Ethereum 2.0, like all said like, yeah, this looks legit. And then Ether price mooned from 400, it went back down to 390 and then it moved up to like 410, 415. And then Bitcoin price blasted through 14K. 14K. It's that 14200. And again, conflating variables, SPX is also mooning. But I think Bitcoin's mooning because of Ethereum, man. And it's always done this. It's always done this. Like with the 2017 Bitcoin all-time haunt,

was the ICO mania on Ethereum. And Bitcoin moving past 10K was as a result of DFI summer in Ethereum. And now Bitcoin moving through 14K happened when the Ethereum 2.0 staking contract got locked or got announced. And so I'm a fan of conspiracy theories. And my conspiracy theory is that Bitcoin moves

when cool things happen on Ethereum. Oh yeah. And I think that's like, for me, that's like that's not a conspiracy theory. That's like what we see empirically and those instances. Sometimes Bitcoin moves, lots of times, Bitcoin moves and then ETH follows. But sometimes ETH moves and then Bitcoin follows. I think some people are unwilling to accept the ladder or the ETH leading because they feel like it's the tail wagging the dog a little bit.

Right. And they're like, no, Bitcoin is the dog. Right. And ETH there is the tail and you follow me. And I'm not sure that they're right about that. I don't see the evidence for that. Right. I know.

regardless look bitcoin does well eif does well eif does well eif does well bitcoin does well this is true you should buy both that's the final alpha leak right here yeah but you can't stake your bitcoin so you can't that's that's david flip in uh eith bull again so hey man i've always been in ethically all right dude so um what do we got next so this is alpha leak what what can folks do now what um kind of resources are we're going to provide for them? You want to start with the rocket pool resource that we have? Yeah. So rocket pool is something that I have close dear to my heart. And the reason why I say that is because rocket pool, of all the other projects on Ethereum, yield farms, defy apps, whatever, rocket pool is a little different because it's related to the core infrastructure of the Ethereum

blockchain. It doesn't actually have any code in the L1 itself. It's like not a natively built system, but it does operate impacting the actual fundamentals of the Ethereum blockchain, right? And what rocket pools are are staking pools. We have a theory that ether is going to be really valuable one day. And that means 32 ether to stake might be like out of reach for a large amount of people. And so rocket pool is a staking pool where people with less than 32 eth can come together to stake on a single node. And this is really good for decentralization of Ethereum in two different ways. It decentralizes the nodes by incentivizing more total nodes

and also decentralizes the set of possible staking individuals. So it really is increasing decentralization on two separate fronts in one product. There's a fantastic video with David Rugendike, who did a, we were talking about the end at the end of the interview, about how efficient we were with the interview. There's really good information in there. And so if you're looking for more information, there's going to be a link somewhere in this YouTube video in the corner here where you can click

and it'll take you right there. Some definitely some juicy info there. Absolutely. So if you've heard everything we've talked about so far, you're still interested in staking, but you don't have 32-Eth, you want to stake less than 32, you don't want to run your own hardware. This is a decentralized way to start staking super cool. I'm not sure. On the flip side of things, however, if you are interested in running multiple nodes,

you can receive your staked ether and then a little bit of a dividend on top of that for allowing other people to stake their ether on your notes. And so you can actually make a little bit more money than just vanilla staking yourself. Yeah, pretty cool economics there. And they've been doing this for a long time. Two other resources that we're coming out with. So we've got a how to become a validator on the ETH2 test net on bankless. We will include a link to that. You can look at the test net, but we are updating this for MainNet here shortly. So we'll have a mainnet version for you as well. At some point, subscribe to the program.

You will receive that as well. Lastly, we are putting together a summary of an ETH2 economics report that Consensus is publishing. And we're going to have that for you probably Thursday, if not early next week. Hot. Yeah, it's going to be hot. We might talk about it to meet the nation,

too. So anyway, lots of resources coming at you on the bank list program that we will be providing. David, this has been AlphaLeak. We've been waiting for this specific Alpha League for years, a very long time. Super exciting, man. Anything else you want to say? Yeah. Hey, Ryan, congratulations on making it all the way through the bear market into phase zero, right? Which is finally here. Like, we did it the days. You too. Yeah. You too. Cheers to everyone who went on the journey with us. and really stuck it out during those, you know, kind of dark times. Well, right now, it's even still, even though we had Defi summer, it's not many tourists in this space.

It's all the people who've been here for the long run. And, yeah, like tears, bear markets are not fun. I think we're on the other side of that. And looking forward to staking with you guys alongside of you guys. All right. Well, risks and disclaimers. Of course, ETH is risky. So is ETH staking.

None of this was financial advice, guys. You know, this is the bankless journey. You know the drill. You could lose everything that you put in. If you're putting it in, if you're putting it in D5 staking. So it's not for everyone, but we're glad you're with us on the journey. This has been our Alpha Week, eat staking edition.