After several tests and ETH developers working hard to solve the problems of the transition from Proof-of-work (PoW) to Proof-of-Stake (PoS), good news has finally emerged.
Transition from PoW to PoS on ETH was successful on testnet
The developers announced that the transition from PoW to PoS on ETH was successful. As the team highlighted, this is an important step towards the final transition in ETH that will change its consensus algorithm.
Despite being a testnet, ETH 2.0 has around 106,000 validators. In addition, it has 3.4 million ETH testnets protecting the network.
Therefore, this high participation rate helps the testnet to be very close to reality until the official launch on the mainnet.
According to Trustnodes, if all goes well, the launch of ETH 2.0 should probably take place in June or July. At this time, ETH becomes deflationary based on current data. That’s because the burning is taking around 2,500 ETH out of circulation a day. Meanwhile, the daily staking rewards are around 1,500 ETH.
This means that 1,000 ETH per day will be withdrawn from circulation starting in the second half of the year if the testnet continues to perform well, giving ETH a rate of -0.5% per annum.
“Furthermore, the grid will become very eco-friendly due to a 99.95% reduction in energy demand. After all, GPUs will no longer be needed to secure the network, or any other hardware,” points out Trustnodes.
In this way, corporate investors will be given the green light on ethics if they are currently constrained by environmental investment criteria.
“This all started with the current PoW ETH network entering its final days as it counts down to its transformation into Proof of Stake after five years of intense full development towards this goal,” concluded Trustnodes.