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When people say "The more you stake, the more likely you will be selected as a validator," what do they mean exactly? My understanding is that I am only supposed to deposit 32 ETH (but nothing more) to a deposit contract. So to increase my probability of becoming a validator, I have to deposit into multiple contracts. Is my understanding correct? Thank you!

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Yes, but you have to stake in chunks of 32 ETH. If you have 64 ETH, you can run 2 validators, and you would double your probability of one of your validators being selected as a block proposer.

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