Vitalik Buterin Spoke about the System of Rewarding Stakers and Updating Ethereum

Ethereum is planning to synchronize the parameters of the consensus algorithms of Proof-Of-Work and Proof-Of-Stake by implementing the Casper hybrid protocol. The update will be prepared within 2-3 months. This, as well as the information on the system of rewarding the stakers, was told by the founder Vitalik Buterin at the Edcon conference.

We want to point out that increasing the stake will affect the interest rate, reducing its index. Thus, a steak of 2.5 million ETH provides a reward of 10%, 10 million ETH provides a reward of 5%, and with a stake of 40 million ETH, the annual compensation will be 2.5%. At the same time, the amount of penalties will vary within the limits from 1% to 100%, which will depend on the circumstances.

The network will use penalties in case the staker is offline during half or more of the stake period. Remuneration can be obtained provided the other stakers are online all the time, since the wallet is also theoretically offline.

Also, new updates will include possible hacking of individual nodes or VPS, or some kind of malfunctioning of a disc storing wallet data that will lead to an incorrect holding of one particular staker, then the sanction will cost 2%, but the percentage will increase rapidly if others stakers behave correctly at the same time. Penalty depends on the mechanism of a quadratic leak.

Buterin focuses on the problems of large stake pools, which are the result of the activities of people who attack the pool, since in this case the size of collective fines will be much higher.

We remind you that the developers of Ethereum have already approved the parameter updates Casper FFG.

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