Total Value Staked 🔴

Validators must initially deposit a stake of 32 ETH to start a validator, and will be ejected from the protocol if their balance falls below 16 ETH (in the event of inactivity leak or slashing). Once a validator is active, their total ETH balance will begin to change due to a number of factors:

• Revenue earned from issuance and fees (balance increase)
• Inactivity leak if validators often miss blocks or attestations (balance decreases).
• Slashing in the event of malicious behavior (balance decreases).

The Total Value Staked reflects the sum of all staked deposits, revenue earned, and subtracted penalties from inactivity leak and slashing.

Effective Balance 🟢

Each validator also has an Effective Balance, which is capped at 32 ETH on the upside, and decreases to the nearest 1 ETH increment below this (with a minimum buffer of 0.25 ETH). For example:

• If a staker has 32 ETH and earns 0.5 ETH in rewards, their Total Balance (red) is 32.5 ETH, but their Effective Balance (green) is still 32 ETH.
• If a staker has 32 ETH but leaks 0.5 ETH in inactivity penalty, their Total Balance (red) is now 31.5 ETH, but their Effective Balance (green) is rounded down to 31 ETH.
• A Total Balance of 31.250 ETH will have a Effective Balance of 31 ETH
• A Total Balance of 31.249 ETH will have a Effective Balance of 30 ETH

Stake Effectiveness 🟣

We can then calculate a new metric called Stake Effectiveness which is calculated as the ratio between Effective, and Total staked ETH.