[Analysis] Staking, Ethereum’s mining alternative, will be profitable – but barely - Christine Kim

Ethereum ($ETH) 2.0 will see decentralization increase across the ecosystem at the expense of mining, according to Christine Kim's review of new data posted by Vitalik Buterin. Assuming a single miner staking 32 Ether at 5% per annum, a miner can expect to only make $41 after overhead costs, a net yield of 0.8%. Still, cloud staking will be economically disincentivized, pushing individuals to stake on their own for the sake of the ecosystem. Security costs are another concern, with EthHub's Eric Conner telling Kim, “I think we’ve hit that sweet spot between security and making sure we hold on to ether being a store of value and being programmable money and not over-issuing.” As of now, $4.8 million Ether is issued to miners per year. Under staking, the number drops to 100,000 Ether, assuming 30 million Ether staked, with the same network security.

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