ConsenSys, a blockchain technology company focused on Ethereum (ETH), has published a report on the staking and custody preferences of ETH holders.
The report finds that two-thirds of Ethereum investors plan to stake their coins after the first phase of ETH 2.0 deployment is complete.
Interestingly, ETH holders who plan to manage their own validation nodes expect to receive lower annualized rewards than those who intend to play through a third-party provider.
Staking preferences indicate counterparty risk thresholds
Of the 287 survey Respondents, the largest segment said they plan to use a third party provider to play with 33.1% of the participants. The segment was found to “have the relatively high ETH storage ratio on a stock exchange”. They also stated a basic understanding of the ETH 2.0 economy.
Despite the intention to cede part of their staking rewards to third-party suppliers, the demographic group forecasts an average annual return of 7.6%. Respondents who plan to operate their own nodes, on the other hand, expect annual rewards of 5.8%.
Participants who planned to operate their own nodes “held the relatively largest amount of ETH” and reported having the best understanding of the economics of ETH. It was also found that these respondents stored the majority of their ETH on physical portfolios.
Those who will not bet lack resources
Only 2.8% of survey respondents indicated that they certainly had no plans to stake their ETH, citing lack of funds as the main reason. Most of these respondents store their assets in non-custodial portfolios and identified themselves as having the weakest understanding of the economics underlying ETH 2.0.
14.6% of respondents fell into the undecided camp, citing “the desire to wait and see” as the main reason for their caution. Undecided respondents have the highest expectations for rewards – predicting returns of 9.4% per year.
The remaining 16.7% of respondents provided only a partial response.
Most nodes will hold 50% or more of their assets
42.5% of respondents planning to manage their own nodes plan to hold between 50% and 100% of their ETH assets.
One in five participants indicated that they would hold between 91% and 100% of their ETH portfolio – comprising the largest segment of respondents when looking at the ten percent brackets. The second largest tranche was that of investors who planned to bet between 21% and 30% of their ETH, with 14.9%.
35.1% said they will hold less than half of their ETH, leaving 7.4% who did not provide a figure.
More than a quarter of survey participants said they did not hold any Bitcoin (BTC).