Wondering how much solo stakers can make?

A big benefit of solo staking is that you, the lone staker as an individual or a business, can easily track all of your nodes’ earnings which includes the consensus layer returns and the execution layer returns ( MEV+ blockproposing rewards). Plus, you get to keep all of these different types of rewards.

This is a big deal, and I was thrilled to read Blockscholes and Twinstake’s report on Analyzing Execution Layer Rewards and MEV.

On the first page, they sum up the potential gains for solo stakers: “Despite a low average, execution layer rewards can be incredibly large. The 99.99th percentile hits 28.873 ETH, compared to an average execution layer reward of just 0.112 ETH per block. the extreme skew of MEV payments means that execution layer rewards can occasionally far outweigh the rewards that a staker earns on the consensus layer.” This means that execution layer returns act like occasional jackpot payments.

Solo staking isn’t a walk in the park compared to using Liquid staking providers. It requires you to safeguard your validator mnemonics, but the chance to make more money is crystal clear.

In a nutshell, solo staking means:

  • Owning the infrastructure you stake on, exclusively. Launchnodes provides professional services and subscriptions to help you do this.
  • Setting up your tech, which Launchnodes make easier.
  • Choosing your Execution layer and Consensus Layer clients 
  • Deciding between cloud or bare metal infrastructure. Launchnodes can help you do this.
  • Owning the IP and data relating to your staking infrastructure
  • Managing your validator mnemonics.

And it gets better. Recent developments in the Ethereum ecosystem, like re-staking and the proposal to increase the maximum effective balance for validator nodes, mean solo stakers can potentially earn even more. Running your own validator nodes as a solo staker is becoming more lucrative.

As for the rewards, based on two randomly chosen nodes we run (see below), the APY can go as high as 16% per node. But remember, luck plays a role in determining how many execution layer rewards your node generates. It’s a variable value, not something fixed.

Big thanks to Blockscholes and Twinstake for their detailed report, shedding light on the earning potential with execution layer returns and MEV. Our goal is to assist businesses and individuals in becoming solo stakers, and we hope this information helps you see the profit potential in solo staking!

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