Ethereum developer confirms Shanghai upgrade will not unlock staked tokens

Must read

FTX looking to raise $1B in funding at $32B valuation

FTX looking to raise $1B in funding at $32B valuation Zeynep Geylan · 15 mins ago · 2 min read...

India considering GST on crypto transactions amid evaluation of sector’s legality

India considering GST on crypto transactions amid evaluation of sector’s legality Cynthia Chung · 1 hour ago · 2 min...

Zilliqa launches web3 gaming console with in-built miner and crypto wallet

Zilliqa launches web3 gaming console with in-built miner and crypto wallet Liam 'Akiba' Wright · 2 hours ago · 2...

Binance sets up global advisory board to drive responsible regulation of crypto

Binance sets up global advisory board to drive responsible regulation of crypto Christian Nwobodo · 2 hours ago · 2...

Ethereum developer confirms Shanghai upgrade will not unlock staked tokens Ethereum developer confirms Shanghai upgrade will not unlock staked tokens Samuel Wan · 35 mins ago · 2 min read

The Ethereum website incorrectly states staking withdrawal functionality will be enabled in the Shanghai upgrade, leaving depositors in limbo.

2 min read

Updated: September 20, 2022 at 1:59 pm

Ethereum developer confirms Shanghai upgrade will not unlock staked tokens

Cover art/illustration via CryptoSlate

Xeggex

By messenger exchange with CryptoSlate, Ethereum developer Micah Zoltu has confirmed the upcoming Shanghai upgrade will not enable the withdrawal of staked ETH tokens.

Currently, ETH can only be deposited to the staking contract and not withdrawn. Per Ethereum, the withdraw functionality would be enabled following the Shanghai upgrade. However, it has since come to light that previous literature on the matter was incorrect.

Since the Proof-of-Stake (PoS) Beacon Chain went live on December 2020, a total of 13.4 million ETH has been locked on the chain. At today’s price, this is valued at $20.9 billion.

However, with confirmation Shanghai will likely not enable withdrawals, depositors are now in the dark regarding the return of their tokens.

Confusion surrounding the Ethereum Shanghai upgrade

With the Merge completed, thoughts turn to the next significant Ethereum upgrade.

According to the Ethereum website, Shanghai was initially slated for release in six to twelve months. But as noted by Blockchain Educator@Dimi_h, this estimate was quietly scrubbed to leave no deadline.

Nonetheless, the Shanghai upgrade will focus on reducing gas fees. Based on ongoing developer discussions, there is no definitive plan on how to achieve this goal yet.

But some of the ideas being floated include making the block-network interaction more efficient and the implementation of proto-danksharding, which relates to roll-up technology batching multiple transactions and speeding up confirmation times while slashing fees.

Despite the uncertainty of how best to approach reducing gas fees, among the objectives for Shanghai was the inclusion of staking withdrawals. But it has since transpired this is no longer the case, leading to confusion among the community.

Ethereum website screen grab on Shanghai enbaling withdrawals
Source: Ethereum.org

No agreed date for withdrawals yet

Zoltu told CryptoSlate that there is no agreed-upon timeline for withdrawals to be activated at present.

“Many people are shooting for Shanghai, but the core devs haven’t yet discussed what will actually be included…”

With that, the dev confirmed that the Ethereum website is incorrect, explaining the hick-up as a consequence of “everything being decentralized.”

Protocol Specialist at Coinbase, Viktor Bunin, waded into the discussion by saying ETH holders accepted “a ton of risk” by staking their tokens with no definitive date for their return.

He urged devs to enable withdrawals in the Shanghai upgrade or face the loss of community goodwill.

“Not doing so would be cruel and irreparable harm goodwill in the community.”

More articles

Latest article

FTX looking to raise $1B in funding at $32B valuation

FTX looking to raise $1B in funding at $32B valuation Zeynep Geylan · 15 mins ago · 2 min read...

India considering GST on crypto transactions amid evaluation of sector’s legality

India considering GST on crypto transactions amid evaluation of sector’s legality Cynthia Chung · 1 hour ago · 2 min...

Zilliqa launches web3 gaming console with in-built miner and crypto wallet

Zilliqa launches web3 gaming console with in-built miner and crypto wallet Liam 'Akiba' Wright · 2 hours ago · 2...

Binance sets up global advisory board to drive responsible regulation of crypto

Binance sets up global advisory board to drive responsible regulation of crypto Christian Nwobodo · 2 hours ago · 2...

Helium community votes to migrate to Solana, scores new T-Mobile partnership

Helium community votes to migrate to Solana, scores new T-Mobile partnership Oluwapelumi Adejumo · 3 hours ago · 2 min...