The Ethereum Foundation announced that it will sponsor staking projects on the ETH 2.0 network powered by Proof-of-Stake (PoS). In the announcement, it was stated that the grant applications are until 22 December 2020 for all projects.
The ETH transaction, which locks onto the network to join the Ethereum 2.0 network working with the PoS algorithm and gain blocks, is called ETH 2.0 staking. The Ethereum Foundation has also prepared a grant program to encourage users and institutions in this regard and announced that it will sponsor successful projects.
In the news of Theblockcrypto, it is stated that the purpose of the foundation is to make the transactions of Ethereum 2.0 staking and validators function more properly. For this reason, the foundation said it will evaluate every project at any stage. Foundation; He also stated that they are interested in community and education, staking and verification tools, data analysis and visualization, but they do not set strict boundaries on the project topic.
What is staking?
Staking in line with what is transmitted on Ethereum’s website means investing 32 ETH in the network in order to use and activate the verifier program. Validators are responsible for storing data, maintaining transactions, and joining new blocks to the blockchain network. As a result of the staking of the verifier on the network, the validators earn ETH while other users on the network can make transactions in confidence.
In addition, various awards can be earned with the staking process. However, according to the stated, it is also stated that ETH may be lost as a result of non-verification or malicious actions. It is also said that the rewards obtained as a result of ETH 2.0 staking transactions can be received when the ETH network switches to a full PoS system or when the Ethereum main network is fully operational.