Anonymous known as Pintail on Twitter and GitHub Ethereum (ETH) His analyst calculated the amount of reward validators could receive after migrating Ethereum to the Proof of Stake (PoS) system.
Ethereum Validators Can Earn 5.3 to 7.3 Percent Annually, According to Analyst
According to the study shared by Pintail, the vast majority of rewards shared among Ethereum (ETH) network users actually come from the so-called “MEV” (Maximal or Miner Extractable Value).
This variable will not change much with the implementation of the Merge upgrade on the Ethereum (ETH) mainnet, although the block interval on Ethereum (ETH) has changed from 13.5 seconds (average) to 12 seconds (fixed).
Pintail said he’s been tracking MEV dynamics over the past six months. Based on these calculations, the post-Merge median return for Ethereum validators will be around 6.1% per year.
However, Pintail added that the actual statistics for validator rewards may vary:
“Modelling based on the same level of MEV paid to validators post-merge indicates a median 6.1% APR for validators (including both MEV and consensus tier rewards), lower quartile 5.3% and upper quartile 7.3%.”
This indicator includes both the consensus tier rewards and the so-called MEV rewards. However, some users will find that their rewards are less variable than their competitors’ rewards.
Pintail envisions that such predictability can be achieved by running multiple validators or “pooling” with competitors in the network.
The ETH update is scheduled for September 15.
*Not investment advice.
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