After Ethereum’s Merge, Ethereum staking returns may not be at the expected level.
Ethereum’s planned Merge will take place from September 14-16, if nothing goes wrong.
Staking Revenues May Not Be At The Desired Level After Merge
Ethereum’s highly anticipated Merge will happen in the coming weeks, if that’s okay. The Bellatrix update, which took place in the past weeks, went smoothly. One of the big discussions on the Ethereum basis was what the staking revenues would be with the transition from Proof of Work to Proof of Stake.
There is a perception in the market that staking revenues will increase to 12 percent with Ethereum working on Proof of Stake. However, this data is obtained by changing according to the historically staked ETH. Current network data and stakes indicate that the percentage of return will be less.
Table showing how the yield will be affected if ETH increases in the network Source: EthHubBlock rewards are data shared by all validators. Ethereum’s return from block rewards is determined by the amount of ETH staked.
Transaction hints are also distributed to validators. During times of network congestion, users can tip validators to encourage prioritization and selection of their transactions over others.
