Ethereum 2.0 or Eth2, is an upgrade to the Ethereum network. By migrating Ethereum from the current Proof-of-Work network to a new Proof-of-Stake blockchain, Eth2 aims to increase scalability and reduce energy consumption.
As a Proof-of-Stake blockchain, the Eth2 Beacon Chain is built and secured by the network's validators. To participate as a Beacon Chain validator, you must stake ETH by sending it to a deposit contract on the Ethereum network.
Locked staking rewards
Understand that, unlike regular Proof-of-Stake protocol, staked ETH and ETH staking rewards will be locked until the Ethereum 2.0 network upgrade is complete. This transition is expected to evolve over multiple “phases” and may take several years to complete or may never be completed. Kraken has no control whatsoever over this process. In the event the Eth2 network upgrade is delayed or cannot be completed, you may be unable to access, withdraw or transfer your assets on-chain indefinitely.
- The market is NOT available for users located in or residents or citizens of the US and Canada (these clients can stake ETH, but not trade their staked ETH for unstaked ETH).
- We offer no guarantees of any kind about the continued availability or liquidity of this market - price slippage in market orders should be expected and it may be difficult to exchange staked ETH for unstaked ETH in large amounts and this market may not be available for the duration of the Ethereum 2.0 transition.
As described below, your user dashboard will assign different ticker symbols to the ETH in your account to designate its status within the Ethereum ecosystem (i.e., un-staked ETH, staked ETH and ETH earned as staking rewards).
The Ethereum 2.0 network imposes an activation period on new validator nodes, which may cause a delay in distributing ETH staking rewards. To ensure staking rewards are distributed fairly, newly staked ETH will undergo up to a 20 day bonding period before it will start earning ETH2 rewards. After the bonding period has elapsed, staking rewards will begin to accrue.
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ETH |
The ETH ticker on Kraken represents “regular” ETH: ETH on the Ethereum blockchain that has neither been staked nor earned as staking rewards. It can be staked, deposited, traded and withdrawn. |
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ETH2.S |
The ETH2.S ticker on Kraken represents ETH that has been staked to support the Eth2 network upgrade. Clients that are not located in or citizens or residents of the US or Canada may transact on Kraken’s ETH2.S/ETH. Otherwise, ETH2.S cannot be un-staked, deposited or withdrawn. |
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ETH2 |
The ETH2 ticker on Kraken represents ETH that is earned as staking rewards through Eth2 staking. ETH2 cannot be staked, deposited, traded or withdrawn. |
Note that staking ETH also impacts your equity for margin trading, because it is a collateral currency and will be removed from your trading and equity balances while staked.