ConsenSys, the Ethereum-focused blockchain technology firm, has released a report that looks at the ETH holders’ staking and custody preferences, which revealed two-thirds of Ethereum hodlers are planning to stake their coins once the first roll-out phase of ETH 2.0 is complete.
Interestingly, holders of ETHs who plan to run their own validator nodes expect to receive lower annualized rewards than those who intend to participate through a third party provider.
The largest segment of the 287 survey respondents reported that 33.1 percent of the participants plan to use a third-party provider to stake in. The segment has been found to “exhibit ETH’s relatively highest storage ratio on an exchange.” They also self-report a basic understanding of the economics of ETH 2.0.
The demographic anticipates an annual average return of 7.6%, despite planning to give up a portion of their staking rewards to third-party providers. On the other hand, respondents who plan to operate their own nodes expect 5.8 per cent annual rewards.
Participants planning to operate their own nodes have been found to “hold the relatively largest amount of ETH” and report having the strongest understanding of the economics of ETH. They have also found that these respondents store most of their ETH on hardware wallets.
Don’t want to Stake, don’t have Resources
On the other hand, 2.8 percent only of survey respondents indicated that they definitely do not plan to stake their ETH, citing a shortage of holdings as their primary reason. Most of these respondents store their assets in non-custodial wallets, and identify themselves as having the lowest economic understanding underpinning ETH 2.0.
Moreover, 14.6 percent of the respondents fell into the undecided camp, citing “the desire to wait and see” as their primary cautionary base. The undecided respondents have the highest staking rewards expectations, anticipating annual returns of 9.4 percent.
The remaining 16.7 percent of respondents provided only a partial answer.
Separately, 42.5 percent of respondents who plan to run their own nodes are planning to stake between 50% and 100% of their ETH holdings.
One in five participants indicated that they would be staking between 91 percent and 100 percent of their ETH portfolio — which includes the largest segment of respondents when looking at 10 percent brackets. The second largest bracket was investors who planned to stake between 21% and 30% of their ETH, 14.9%.
35.1 percent stated that less than half of their ETH will be stakeholder, leaving 7.4 percent who did not provide a figure.
More than one-quarter of the participants in the survey indicated that they do not hold any Bitcoin (BTC).