How Ethereum Moved from Mining to Staking

Written By Ryan Fulton Tagged As Ethereum staking Proof of Stake Ethereum mining The Merge crypto staking

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On September 15, 2022, something huge happened in cryptocurrency. Ethereum, the second-largest blockchain in the world, turned off its mining machines - forever. No more GPUs spinning 24/7, no more electricity bills climbing into the hundreds, no more noisy rigs heating up basements. Instead, it switched to staking. This wasn’t just an upgrade. It was a complete rewrite of how the network stays secure. And it changed everything.

What Was Ethereum Mining?

Before The Merge, Ethereum worked like Bitcoin. Miners used powerful graphics cards (GPUs) to solve complex math problems. The first one to solve it got to add a new block of transactions and earned rewards in ETH. It was competitive, expensive, and energy-hungry. A typical mining rig could cost between $2,000 and $10,000. Monthly electricity bills? Often $200-$500, depending on where you lived. And even then, profits were unpredictable. As more people joined, the difficulty went up. Rewards went down. Many miners were barely breaking even.

The environmental cost was huge. Ethereum’s annual electricity use before The Merge was roughly the same as the entire country of the Netherlands. Critics called it unsustainable. Environmental groups pressured exchanges. Regulators started looking at crypto with suspicion. Ethereum’s team knew they had to fix it - and they had a plan.

The Merge: Turning Off Mining for Good

The Merge wasn’t a small tweak. It was the moment Ethereum’s old blockchain (the execution layer) merged with its new Proof of Stake chain (the consensus layer). After years of testing, the network switched over in one seamless update. No hard fork. No chain split. Just a clean transition.

The result? Ethereum’s energy use dropped by more than 99%. Overnight, it went from using as much power as a small country to using less than a single household. That’s not just efficient - it’s revolutionary. For the first time, a major blockchain proved you could be secure without burning through fossil fuels.

The old mining rewards? Gone. In their place came staking rewards. Instead of solving puzzles, validators now lock up ETH as collateral. The more ETH you stake, the higher your chance of being chosen to propose or verify the next block. You’re not competing with hardware - you’re competing with capital.

How Staking Works Now

To become a solo validator on Ethereum, you need 32 ETH. At current prices, that’s around $80,000-$120,000. That sounds like a lot - and it is. But here’s the catch: you don’t need to run your own server.

Most people use staking pools or centralized platforms like Coinbase, Binance, Kraken, or Gemini. These services let you stake as little as 0.01 ETH. You deposit your ETH, they handle the technical side, and you earn a share of the rewards. It’s like putting money in a savings account - except it’s blockchain-based.

Rewards? Typically 4-7% APY. That’s steady, predictable income. No more chasing volatile mining profits. No more worrying about GPU prices crashing. Just deposit, wait, and earn. The rewards come from two places: new ETH issued to validators (inflation) and transaction fees from users sending ETH or using DeFi apps.

Validators are chosen randomly based on how much ETH they’ve staked and how long they’ve been online. The system is designed to be fair, secure, and decentralized - even if you’re not running a full node yourself.

A mechanical dragon made of mining hardware dissolves into golden ETH tokens as a radiant staking figure ascends.

Staking vs. Mining: The Real Differences

Here’s a quick breakdown of what changed:

Staking vs. Mining: Key Differences
Factor	Mining (Pre-Merge)	Staking (Post-Merge)
Hardware Required	High-end GPUs, cooling, power supply	None - just a computer or phone
Upfront Cost	$2,000-$10,000+	32 ETH ($80K-$120K) for solo, or less via pools
Running Costs	$200-$500/month in electricity	Nearly $0
Energy Use	Massive - equivalent to a small country	99%+ lower - less than a home router
Profit Stability	Highly volatile - depends on difficulty, price, power costs	Steady 4-7% APY - predictable and passive
Technical Skill Needed	Advanced - building rigs, tuning software, monitoring temps	Beginner-friendly via exchanges; advanced only for solo nodes

Staking isn’t perfect. There are risks. If your validator goes offline too often, you can lose a small portion of your stake - a penalty called “slashing.” If you try to cheat the system, you lose more. And your ETH is locked until withdrawals are fully enabled - which happened in early 2023, but still has a queue. You can’t just pull your ETH out instantly if the market crashes.

Still, for most people, staking is simpler, safer, and more profitable than mining ever was.

What Happened to Miners?

When Ethereum shut down mining, hundreds of thousands of GPU rigs went offline. What did those miners do?

Some sold their hardware. eBay and local classifieds flooded with used RTX 3080s and 3090s. Prices dropped by 60-80% in months.

Others switched to other PoW coins. Ethereum Classic (ETC), Ravencoin, and Bitcoin are still mined using GPUs or ASICs. But those networks are smaller. Rewards are lower. And the same problems - high electricity, hardware wear, volatility - still exist.

A few kept running their rigs as hobbyists. They liked the tech. The hands-on control. The noise. But they were the minority. Most saw the writing on the wall and moved on.

Who Benefits From Staking?

Everyone - but differently.

Regular users get faster, cheaper transactions and a greener network.
Investors earn passive income without buying mining gear or paying bills.
Developers can now build on a scalable, energy-efficient base. Layer-2 solutions like Arbitrum and Optimism thrive because Ethereum’s foundation is stable.
Regulators no longer see Ethereum as an environmental threat. Countries that banned mining now quietly accept staking.
Institutions can now participate safely. Hedge funds and family offices now stake ETH through regulated platforms.

Even the Ethereum network itself benefits. With staking, security is tied to economic incentives. To attack the network, you’d need to own 33% of all ETH - over $100 billion. That’s far harder - and far more expensive - than buying enough GPUs to overpower a mining network.

People from all walks of life staking ETH on their devices, with abandoned mining rigs rusting in the background.

How to Start Staking Today

If you want to start staking ETH, here’s how:

Buy ETH on a trusted exchange like Coinbase, Kraken, or Gemini.
Choose your method:
- Centralized staking (easiest): Go to your exchange’s staking page, click “Stake ETH,” and confirm. Done in 5 minutes.
- Pooled staking (mid-level): Use services like Lido or Rocket Pool. Deposit ETH, get stETH or rETH tokens in return. Trade them like regular ETH.
- Solo validator (advanced): Run your own node with 32 ETH. Requires Linux skills, a dedicated computer, and constant monitoring. Only for tech-savvy users.
Wait for rewards. They’re distributed every few days. You’ll see them in your wallet automatically.

There’s no need to buy hardware. No need to worry about cooling. No need to monitor your rig’s temperature at 2 a.m. It’s just deposit, stake, earn.

The Bigger Picture

Ethereum’s shift from mining to staking didn’t just change how ETH works. It changed the entire crypto industry’s trajectory.

Other blockchains are following. Cardano, Solana, Polkadot - they all use staking. Even Bitcoin skeptics now admit: Proof of Stake is the future. It’s cleaner. It’s cheaper. It’s more democratic.

The number of ETH staked? Over $40 billion as of 2025. That’s more than half of all ETH in circulation. And it’s growing. More than 500,000 individual validators now secure the network - from individuals in New Zealand to institutions in Singapore.

The next big update? Sharding. It’ll split the network into smaller pieces to handle even more transactions. And it’ll make staking even easier - possibly lowering the 32 ETH requirement in the future.

Final Thoughts

Ethereum didn’t just upgrade its technology. It upgraded its values. It chose sustainability over spectacle. Accessibility over exclusivity. Long-term health over short-term profits.

Mining was a product of its time. Staking is the future. And for anyone who thought crypto was just about flashy hardware and loud fans - this proves otherwise.

You don’t need a garage full of GPUs to be part of Ethereum. You just need ETH. And a little patience.

Can I still mine Ethereum after The Merge?

No. Ethereum mining ended completely on September 15, 2022. Any website or service claiming to offer Ethereum mining is either outdated or a scam. The network only accepts staking now. If you’re seeing mining rigs advertised for ETH, avoid them.

How much ETH do I need to start staking?

To run your own validator, you need 32 ETH. But most people stake through exchanges or pools, where you can start with as little as 0.01 ETH. Platforms like Coinbase, Kraken, and Lido let you deposit any amount and earn proportional rewards.

Is staking ETH safe?

Staking is generally safe if you use a reputable platform. Centralized exchanges hold your ETH and manage the technical side - but you’re trusting them with your funds. Pooled staking services like Lido issue stETH tokens, which you can trade if needed. Solo staking is the most secure but carries risks like slashing penalties if your node goes offline. Always research before choosing a method.

What happens if ETH’s price drops while I’m staking?

Staking rewards are paid in ETH, so if ETH’s price falls, your rewards are worth less in USD terms. But you still earn the same percentage (4-7% APY). The value of your staked ETH will fluctuate with the market - just like holding any crypto asset. You’re not losing ETH unless you get slashed (rare), but your USD value can go down.

Can I unstake my ETH anytime?

Yes, since the Shanghai upgrade in April 2023, you can withdraw staked ETH and rewards. But there’s a queue. If thousands of people try to unstake at once, it can take hours or days to process. It’s not instant, but it’s no longer locked forever.

Is staking ETH better than mining Bitcoin?

For most people, yes. Bitcoin mining requires expensive ASIC hardware, constant electricity, and technical upkeep. Staking ETH requires no hardware, no electricity costs, and no maintenance. You earn 4-7% APY with just a wallet. Bitcoin mining might pay more in some cases - but only if you have cheap power and a large setup. For the average person, staking is simpler, cheaper, and more accessible.

There are 19 Comments

Abhishek Bansal

So now you just need $100k to play? Cool. So much for decentralization. They just made it a rich man's club.
Albert Chau

This is exactly why crypto is dead. They traded innovation for compliance. Welcome to Wall Street 2.0.
Ike McMahon

Staking is literally the easiest way to earn passive crypto income. No setup, no noise, no heat. Just chill and collect.
Kathy Wood

This isn't progress-it's surrender. They gave in to the green panic. Ethereum was supposed to be revolutionary, not a corporate ESG poster child.
Kathryn Flanagan

I just want to say, for anyone new to this, staking is way less scary than it sounds. You don’t need to be a coder or own a server. Just pick a trusted platform like Coinbase or Lido, deposit your ETH, and let it sit. It’s like a savings account, but with more blockchain vibes. And honestly? The rewards are way more consistent than mining ever was. You’re not fighting against a global network of miners anymore-you’re just part of the system. It’s calm. It’s quiet. It’s kind of beautiful, really. No more worrying about your GPU melting in August. Just… earn. And sleep. You deserve that.
Joey Cacace

I staked 5 ETH on Coinbase last year and didn’t even think about it until my wallet showed +0.3 ETH. It’s like magic. 🌟
Taylor Farano

Wow. So now instead of wasting electricity, we’re wasting capital. Brilliant. The rich get richer, and the rest of us get to watch from the sidelines.
Anselmo Buffet

I used to mine. Now I just hold and stake. Life’s better. No more 3am checks. No more fan noise. Just peace.
Sarah Luttrell

Oh look, another blockchain pretending to be ethical. Next they’ll be charging carbon credits for gas fees. How very… European.
Scot Sorenson

If you think 32 ETH is the barrier, you’re missing the real point. The real barrier is trust. Who’s really running the validators? Big exchanges? Guess who controls the network now.
Steven Ellis

The Merge wasn’t just an upgrade-it was a moral reckoning. Ethereum chose longevity over spectacle, sustainability over spectacle, and community over chaos. That’s not weakness. That’s wisdom. The environmental impact alone justifies it: we went from consuming as much power as the Netherlands to less than a toaster. And yes, the barrier to entry is higher-but that’s the price of security. The network now requires more than hardware-it requires economic commitment. That’s not exclusion. That’s integrity. And for the first time, a major blockchain proved that scale and sustainability aren’t mutually exclusive. This isn’t the end of crypto’s wild west-it’s the beginning of its adulthood.
Bridget Suhr

I love how people act like staking is centralized because you can use exchanges. But you can also run your own node. It’s like saying banking is centralized because you use Chase instead of building your own vault. There’s choice. Use it.
Taylor Fallon

I think what’s beautiful is how this shift lets people from all over the world participate without needing a garage full of GPUs. A teacher in rural India can stake 0.1 ETH on her phone and earn rewards. That’s real inclusion. Not the kind that shouts about decentralization while hoarding rigs. This? This is quiet revolution.
Toni Marucco

The notion that staking is less decentralized because of pools is a red herring. The network’s security is distributed across hundreds of thousands of validators-many of whom are individuals running their own nodes. The pools merely lower the barrier to entry, which is the entire point of democratizing participation. This isn’t centralization-it’s scalability with integrity. The 32 ETH requirement for solo validators still ensures that the core incentive structure remains aligned with long-term commitment. What’s truly centralized? The fiat system that still dominates the world. At least here, you own your assets.
JoAnne Geigner

I just want to say… I know some of you are mad about the $80k barrier, but honestly? It’s not about the money-it’s about the alignment. Mining was a race to the bottom: more power, more heat, more noise. Staking is a commitment to the network. You’re not buying hardware-you’re buying into a future. And yes, it’s slower. And yes, it’s quieter. But that’s the point. We don’t need loud machines anymore. We need quiet, steady hands. And that’s what’s happening. Thousands of people, from Berlin to Bali, are quietly securing the network. Not because they’re chasing profit-but because they believe in it. That’s the real magic.
Heath OBrien

Mining was a mess. Staking is clean. End of story.
Claire Zapanta

This was never about energy. It was about control. The same people who pushed for ‘decentralization’ are now telling you who can and can’t validate. Welcome to the new feudal system. They own the keys. You just pay rent.
Patricia Whitaker

I don’t even care about staking. I just miss the noise.
Toni Marucco

The real tragedy isn’t the end of mining-it’s the refusal to acknowledge how much better this is. The environmental argument was never just about emissions-it was about legitimacy. Ethereum’s shift gave it moral authority. Regulators who once called crypto a scam now quietly accept it. Institutions that once avoided it now allocate billions. That’s not surrender. That’s evolution. And yes, it’s harder to game. But that’s the point. We’re not here to exploit. We’re here to build.