What to do if your Gemini deposit is pending?

Ethereum staking requires 32 ETH to become a validator, with rewards and penalties tied to performance, while liquid staking offers accessibility through derivatives like stETH.

Aug 09, 2025 at 02:14 am

Understanding the Basics of Ethereum Staking

Ethereum staking refers to the process of locking up 32 ETH in the Ethereum network to become a validator and participate in the consensus mechanism of the blockchain. This transition from Proof of Work (PoW) to Proof of Stake (PoS) occurred with the Ethereum 2.0 upgrade, fundamentally changing how blocks are validated and secured. Validators are responsible for proposing and attesting to new blocks, ensuring the integrity and continuity of the network.

To begin staking, users must understand the role of the Beacon Chain, which coordinates all staking activities and validator operations. The Beacon Chain manages validator registrations, tracks balances, and enforces slashing conditions for malicious behavior. When a user deposits 32 ETH into the official Ethereum deposit contract, they initiate the process of becoming a validator. This deposit is irreversible and can only be withdrawn after specific network upgrades enable full withdrawal functionality.

Validators are randomly selected to propose blocks and must remain online to avoid penalties. Downtime or failure to perform duties results in a reduction of staked ETH, known as slashing or penalization. Running a validator requires a dedicated machine with stable internet connectivity and proper configuration of client software.

Setting Up a Solo Staking Node

Solo staking allows individuals to run their own validator entirely under their control. This method maximizes decentralization and offers full autonomy over private keys and operations. The setup process involves several technical steps that must be followed precisely.

• Download the Ethereum deposit CLI tool from the official Ethereum GitHub repository to generate validator keys.
• Run the tool and select the number of validators you wish to create (each requires 32 ETH).
• Create a mnemonic phrase and store it securely—this is used to regenerate keys if lost.
• Execute the deposit command to generate deposit data files, which will be used in the next step.
• Visit the official Ethereum staking dapp (https://deposit.ethereum.org) and upload the deposit data file.
• Connect a Web3 wallet such as MetaMask and confirm the transaction to send 32 ETH per validator to the deposit contract.

After the deposit, the validator enters a queue to become active. This waiting period depends on network congestion and the number of pending validators. Once activated, the validator must run both an execution client (like Geth) and a consensus client (like Lighthouse or Teku) to stay synchronized with the network.

Using Staking Pools and Liquid Staking Derivatives

Not all users can meet the 32 ETH requirement or manage the technical demands of solo staking. Staking pools and liquid staking solutions provide accessible alternatives. These platforms allow users to contribute smaller amounts of ETH and receive staking rewards proportionally.

Platforms like Lido and Rocket Pool operate decentralized staking pools. When a user deposits ETH into Lido, they receive stETH tokens in return, representing their share of the staked assets plus accrued rewards. These tokens are liquid and can be traded or used in DeFi protocols such as Aave or Curve.

Rocket Pool uses rETH as its derivative token and introduces a node operator system where users can either stake as a node or as a minipool participant. Node operators must deposit additional collateral in RPL tokens, adding a layer of security.

The smart contracts governing these platforms are audited and open-source, allowing transparency into fund management. Rewards are distributed automatically, and users can monitor their balances through integrated dashboards or block explorers like Etherscan.

Monitoring and Maintaining a Validator

Once a validator is active, continuous monitoring is essential to maximize rewards and avoid penalties. Validators must ensure their clients are updated, synchronized, and connected to the network at all times.

• Use monitoring tools like Grafana dashboards paired with Prometheus exporters to track validator performance.
• Configure alerts for missed attestations, sync issues, or client crashes.
• Regularly update both execution and consensus clients to the latest versions to prevent vulnerabilities.
• Maintain backup copies of keystore files and passwords in offline storage.

Validator performance is measured by inclusion distance, which reflects how quickly attestations are included in blocks. A high inclusion distance leads to reduced rewards. Validators should also avoid being slashed by ensuring only one instance of their validator key is running at any time.

Withdrawing Staked ETH and Rewards

Prior to the Shanghai Upgrade, staked ETH and rewards were locked indefinitely. After the activation of this upgrade, users gained the ability to withdraw both principal and accumulated rewards.

To initiate a withdrawal:

• Access your wallet or staking interface where your validator is managed.
• Locate the withdrawal credentials field in your deposit data, which should begin with 0x01 for Ethereum Address Type withdrawals.
• Submit a withdrawal request through a supported client or interface.
• Wait for the network to process the request, which may take several days due to queue prioritization.

Partial withdrawals of excess balance above 32 ETH are processed first. Full validator exits require a separate deactivation request and may take weeks depending on network conditions. During the exit process, the validator remains active and continues to earn rewards until fully withdrawn.

Troubleshooting Common Staking Issues

Users often encounter technical obstacles during staking. One common issue is deposit not recognized by the Beacon Chain. This usually stems from incorrect deposit data or network delays. Verify the transaction hash on BeaconScan or Etherscan to confirm inclusion.

Another frequent problem is validator stuck in "pending" state. This occurs when the activation queue is congested. Check the current queue length on beaconcha.in to estimate wait time. No action is required unless the deposit was invalid.

Client synchronization errors can prevent validator duties. Ensure both execution and consensus clients are on the same network (mainnet vs. testnet) and use compatible versions. Re-syncing from a checkpoint may resolve persistent sync issues.

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FAQ

Can I stake less than 32 ETH without using a pool?

No, the Ethereum protocol requires exactly 32 ETH to activate a validator. Any amount below this threshold cannot be used for solo staking. Users with less than 32 ETH must use liquid staking services like Lido or Rocket Pool.

What happens if my validator goes offline?

When a validator is offline, it fails to attest or propose blocks, resulting in rewards being reduced. Extended downtime may lead to slashing if the validator acts maliciously upon reconnection. However, brief outages incur only minor penalties.

Are staking rewards taxed?

Tax treatment of staking rewards varies by jurisdiction. In many regions, rewards are considered ordinary income at the time they are received. Consult a tax professional to understand reporting obligations based on your location.

How do I verify my stETH balance from Lido?

Visit Lido’s dashboard (https://lido.fi) and connect your wallet. Your stETH balance will be displayed alongside accrued rewards. You can also check your balance directly on Etherscan by entering your wallet address.