ETH2 - Frequently Asked Questions

What is Ethereum 2.0?
ETH2 is Ethereum’s upgrade from proof-of-work to proof-of-stake consensus in order to secure the network. To stake on ETH2, participants must run a validator.
What rewards can I earn on ETH2?

ETH2 rewards are dependent on the total amount of ETH staked on the protocol. You can see the approximate rewards earned at each stake rate here.

How much does Staked charge to run my validators?

Staked has two pricing options, per validator you provision:

  • $19 USD, monthly payment: a payment of $19/month will cover your validator for the month, with a payable invoice sent monthly to the email address on file
  • $299 USD, one-time payment: a one-time payment of $299 will cover your validator costs through Phase 1-2 when transfers are enabled. After that point, you will be able to transfer your ETH or continue staking with Staked at the default $19/month.
What is the Deposit Contract?

The Deposit Contract is a smart contract and the primary mechanism to transfer funds from an ETH1 account to an ETH2 validator. It specifies who is staking (ETH1 address that makes the deposit), who is validating (validator public key), the amount of stake (minimum of 32 ETH), and who can withdraw the funds (withdrawal key pair).

What should I do if my Ledger is having issues signing transactions?

The most common issue when signing a transaction through Ledger is Contract Data is turned off. Be sure to turn on Contract Data before proceeding through the transaction (to execute smart contracts with arbitrary data, you need to enable Contract Data in the Ethereum app):

  1. Unlock Ledger device: enter your PIN and navigate to the Ethereum app
  2. Enable contract data on your Ledger (enter the Ethereum app > go to Settings > go to Contract Data > Select “Yes”)
  3. Your Ledger can now interact with smart contracts on Ethereum

Other common issues:

  • Ensure Ledger is properly connected and that you see the desired ETH wallet address you'd like to use at the bottom of the sidebar and it says "CONNECTED - MAIN 0x####...####"
  • If on a Windows machine, signing issues are a common pain point on Windows. Using Metamask to connect to your Ledger is acceptable for this scenario.
What is a validator?
A validator participates in the proof-of-stake consensus for the ETH2 protocol. Each validator on ETH2 must have a minimum of 32 ETH staked in order to vote for new blocks and earn rewards.
What are the risks associated with staking on ETH 2.0?

There are 3 primary risks associated with ETH 2.0 staking:

  1. Depositing ETH1 to the ETH2 beacon chain (through the deposit contract) is irrevocable. After this deposit, you can neither spend nor transfer ETH2 funds until Phases 1-2. However, you can switch staking providers by signing a voluntary exit transaction and importing the private material to a new validator.
  2. Your ETH2 withdrawal address and private key MUST be retained until transfers are enabled. Without this key or the mnemonic, ETH2 funds are effectively lost and inaccessible.
  3. If there is an issue discovered with any (or all) client’s software, the chain may be prevented from finalizing and the protocol’s slashing parameters are increased due to correlated failure. See the infrastructure section for more information on how Staked mitigates these risks.
Which clients does Staked use?

Staked currently uses Prysmatic’s Prysm client, with plans to add Consensys’s Teku, and Sigma Prime’s Lighthouse clients in the near future.

When can I transfer my staked ETH?

Transfers between validators are disabled until at least Phase 1 (around 1-2 years). Learn more about ETH2 phases on EthHub.

What if I want to stake less than 32 ETH?

Staked currently does not have a pooled offering to allow deposits of less than 32 ETH. If you want to stake less than 32 ETH, we recommend using Kraken.

What is Staked’s batching contract?

Staked has developed and open-sourced a batching contract to save our users on gas costs and deposit multiple validators with a single on-chain transaction. It enables users to deposit up to 185 validators (~6K ETH) in a single deposit, offering the convenience of signing a single transaction rather than 185 distinct transactions.

How do I generate a Withdrawal Address?

Staked’s ETH2 offering is non-custodial, meaning only you (the depositor) has access to the withdrawal address key pair required to withdraw in Phase 1 and onwards. Without this key funds cannot be withdrawn so it is extremely important to keep it safe. ETH2 specific withdrawal addresses are different from your usual ETH1 address and are based on the BLS12-381 curve.

There are currently 2 recommended methods to generating your withdrawal address:

1. Command-Line Interface (CLI)

2. Ledger Nano X 

1. Command-Line Interface (CLI): The eth2.0-deposit-cli tool is the official withdrawal address generation method from the Ethereum Foundation. Follow the instructions below to generate a withdrawal address.

Step 1. Installation - Download the deposit command line interface app:

Go to v1.0.0 of the Deposit-CLI at

Download the following files dependent on your OS:

  • macOS: eth2deposit-cli-ed5a6d3-darwin-amd64.tar.gz
  • Linux: eth2deposit-cli-ed5a6d3-linux-amd64.tar.gz
  • Windows:

Step 2. Decompress the file you downloaded.

  • If you receive an error "<file name> cannot be opened because the developer cannot be verified," follow these 2 steps: 
  • 1. Right-click (or control-click) the application in question and choose “Open”
  • 2. Click the “Open” button at the next dialog warning to launch the app anyway
Step 3. Change directories into the newly downloaded and decompressed eth2.0-deposit-cli:

For Mac open iTerm, Linux press Ctrl+Alt+T, and Windows open Command Prompt:
  • You need to navigate to the folder with the deposit-cli
  • Mac/Linux users type "ls" to list items in the directory
  • Windows users type "dir" to list items in the directory
  • If you've saved it in downloads, you may need to type "cd Downloads" to switch into the Downloads folder
You can now enter the eth2deposit-cli from your terminal by running:
  • cd eth2deposit-cli-9310de0-darwin-amd64
The folder name should be:
  • macOS: eth2deposit-cli-9310de0-darwin-amd64
  • Linux: eth2deposit-cli-9310de0-linux-amd64
  • Windows: eth2deposit-cli-9310de0-windows-amd64

*At this point, it is best practice to disconnect from any external (i.e., internet) connections and proceed with the following steps while offline*

Step 4. Create your keys and deposit data (now we are following along with the repo instructions):

Run the following command to enter the interactive CLI and generate keys from a new mnemonic:

  • Mac/Linux: ./deposit new-mnemonic
  • Windows: deposit.exe new-mnemonic

Step 5. Now you will be prompted the following options:

  • Number of validators: corresponds to number of withdrawal keys generated, you can use the same withdrawal address for multiple validators. If you would like one withdrawal key for each validator, enter the number of validators you'd like to provision.
  • Chain: choose mainnet
  • Mnemonic language: defaults to english
  • Passphrase: to secure your key store, don’t lose this!

Step 6. Write down your mnemonic and re-enter it in the next screen to confirm it is stored safely. Now the terminal should provide the following sequence of messages:

Creating your keys.

Saving your keystore(s).

Creating your deposit(s).

Verifying your keystore(s).

Verifying your deposit(s).

Success! Your keys can be found at: /Users/username/Documents/Folder/.../eth2.0-deposit-cli/validator_keys

Step 7. Your ETH2 withdrawal address should be the 96 character pubkey in the deposit_data file:

  • Example BLS ETH2 Withdrawal Key: a58dcbb0e261efc5793f29d73ca2b4676f238d07db30199f9ab0580a5e083d0d34bf7682a0eb83d426e6653b3a7e9568
How do I verify my Withdrawal Address?

This document outlines how you can verify the withdrawal address you see on chain (e.g., Etherscan) to the withdrawal address generated through the eth2-deposit-cli.

Can I pay via Reward Share?

Given Staked’s ETH2 validators are non-custodial (you always hold custody of the withdrawal key), it is not possible to pay via reward share.

Can I pay via Crypto?

Yes, Staked uses Coinbase Commerce to manage cryptocurrency payments. At this time, you can pay via Bitcoin, Ethereum, DAI, USDC, Litecoin, or Bitcoin Cash.

Can I pay via Credit Card?

Yes, Staked uses Stripe to manage credit card payments.

What is the difference between a Monthly payment and a One-time payment?

ETH2 transfers are not enabled until at least Phase 1 (learn more about ETH2 phases). A One-time payment will cover your validators until Phase 1 or when transfers become available.

Monthly payments are a recurring bill, charged monthly for the number of validators you have. If using Stripe, you will be charged automatically to the card on file. If using Coinbase Commerce, you will be sent an invoice via email and must pay through an on-chain transaction every month.

What types of reporting do you offer?

Staked provides 2 methods for accessing reporting on ETH2 validators:

1. Validator Dashboard: when authenticated using a Staked account or your wallet, use this dashboard to see high level details of ALL your validators at a glance.

2. Reporting: when authenticated using a Staked account or your wallet, use the Reporting module to view a roll of up rewards across ALL of your validators, aggregated daily for ease of use. This reporting is downloadable in CSV format. For detailed reporting at the epoch level for a given validator, we recommend using Beaconscan or Beaconchain.

Where can I see a detailed status of my validator?

While Staked's validator dashboard will provide you with high level information at a glance across all of your validators, the following 2 resources are a great source for detailed information:

  • simply enter your ETH1 public address in the search bar and all of your validators, their respective public keys, and performance will be listed
  • Beaconscan: after determining your validators' public keys above, Beaconscan allows you to look at their status and performance at an individual validator level
What if I deposited but still see N validators ready for deposit and/or no data?

If recently deposited (e.g., within 10 minutes), please should check back shortly and refresh the page - it will be up to date within the hour.

How is Staked’s offering non-custodial?

Staked’s ETH2 offering is non-custodial, meaning only you (the depositor) has access to the withdrawal address key pair required to withdraw in Phase 1 and onwards. Without this key funds cannot be withdrawn so it is extremely important to keep it safe.

Staked generates and stores the private material for validator keys using secure multi-party computation (MPC). When an ETH2 validator in Staked’s infrastructure is asked to sign/propose/attest to a block, MPC provides the required signatures. While retaining custody of the validator keys provides the ability to operate the validator, only the custodian of the withdrawal key can transfer funds.

What are the slashing penalties on ETH2?

In short, the slashing penalties on ETH2 are similar to the rewards gained. For example, if your validator is down for 4 hours, you would incur: 1) the opportunity cost of earning rewards during that time, and 2) be penalized for essentially that same amount. NOTE: for the first ~6 months of the beacon chain, all slashing penalties are reduced by ~1/3.

A rough approximation of offline penalties: in "normal" (non-activity leak) circumstances, a validator loses approximately 15.8% of their stake per year they are offline. That's ~1.4% for being offline for a month or ~0.3% for being offline for a week.

Receiving a penalty is not the same as being slashed: a penalty represents only a decrease in balance on the validator (e.g., due to a miscast vote within certain parameters or being offline). Slashing only occurs if a validator conducts Double Voting or Surround Voting. If more than 33% of validators ever go offline at once, this will lead to finality leaking which will incur extra penalties for offline validators. See EthHub for more detailed economics. 

What is Staked’s infrastructure and failover strategy?

See this blog post by Staked’s CTO for a detailed overview.

Staked runs across multiple cloud environments. We’re currently running across AWS, Google Cloud, IBM Cloud and Digital Ocean. We use a highly available Kubernetes cluster to monitor the health of those environments and deploy containers with node software in response to network conditions.

Additionally, to preventing double-signing across environments, Staked uses Hashicorp’s Consul create a MutEx lock that ensures only one node can produce blocks at any time. If we detect issues with our running nodes, Consul re-assigns the ability to sign blocks to our new nodes and blocks any zombies.

How can I reach out for support?

You can email us at [email protected]. It is helpful to provide the following information:

  • ETH1 address which made the deposit
  • Email address used to pay
  • Validator public keys (optional)
  • Did you sign up with email or wallet?
  • Screenshots if applicable