🔮 What to actually expect when ETH merge hits.

September 02, 2022

Seedphrase Daily 👋   We make web3 easy, so you can slide into the space with confidence, like this guy: 

Today's Agenda 📰 :

  • 🔮 ETH merge: What's to come? 

  • 🤝 Ways you can stake ETH for passive income  

  • ⏮ Weekly Wrap

  • 😼 Meme

🔮 The merge is coming this crypto winter. 

Official launch date is September 15 and could go through until the 20th. 

The ETH network will be PAUSED all together for 12 minutes for the merge. People are worried about losing their ETH, but devs say everyone's money will be safe and sound during the transition.  

What's the worst that could happen? 

The Final 12 Minutes of ETH 1.0 ⏳

  • People's assets will be secure and won't impact the functionality

  • Withdrawals/deposits for ETH and ETH-based tokens will be paused on all exchanges

  • 150 ETH devs will be highly alert to find code bugs.

The Result of the Merge 💨

After the merge, ETH will no longer be produced from miners and instead be generated from stakers. Stakers store existing ETH to create more, switching the Ethereum network from proof of work (Pow) to proof of stake (PoS). 

Here's the Problem. 🥲 

According to Dune Analytics, 66% of all staked ETH comes from centralized exchanges. Big firms like Coinbase, Binance, Kraken, and Lido will be responsible for validating most transactions on the ETH network after the merge. 

This would make ETH more centralized than it claims. Centralized exchange's are over seen by the government and regulation, making ETH subject to centralized authority. 

A fundamental of crypto is self-custody (being your own bank), free from government control. 

But wouldn't that defeat the purpose if the government controls 66% of the second biggest network? We all know how they handled our money before. 

So if you believe in decentralization and the future of crypto, 

do NOT stake on centralized exchanges. 🙅‍♂️

🤝 Stake your ETH, make some money

I found a lengthy Reddit thread on different ways to stake your ETH. Here's the summary 👇

Solo Staking: The golden standard for staking because it's secure, provides all the rewards and improves decentralization of the network. 

But requires at least 32Ξ, some technical ability, hardware that can run 24/7 and at least 10Mbps internet connection. 

Rocket pool: Rocket Pool is a trustless, open-source, decentralized and permissionless fractional staking platform. 

This means anyone can be an ETH validator with 17.6Ξ and help secure the network. 

$RETH holder: RocketPool Ether ($RETH) is a way for holders of the coin to passively stake in the Ethereum network. 

The only minimum requirement is 0.1Ξ worth of $rETH, and it's as easy as holding the coin in your Metamask. 

Now you're ahead of everyone waiting to stake their precious ETH. 👍

If you think you missed out on anything this week, these are some more topics we talked about in depth. 

That's about all! You're ready for Monday 😈

You still haven't dipped your toes in Web3? 😱

Now's your chance to partner with Seedphrase Daily so we can build this space together. 

We aim to educate everyday people on subjects they might think are problematic. So, we make it easy. By giving breakdowns, tips and opportunities to make money. There's never a dull moment. 

🌱 Newseeds

Mt. Gox repayment is coming, causing fear of a massive Bitcoin dump. Don't say we haven't been warning you. ⛔️

😼 Meme of the Galaxy 

Babe I just need $200 to mint this NFT, it will make us rich. 

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research

See you Monday! 

Reply

or to participate.