on Ethereum (ETH) As the Shanghai update, which will allow the withdrawal of staked ETH tokens, is approaching, a new statement came from the developers.
Sepolia Testnet On Ethereum To Be Launched On February 28
In a statement published on the official website of the Ethereum Foundation, he said:
“The Shanghai+Capella (Shapella) mainnet upgrade is moving into the final pre-launch phase with public testnets. The Zhejiang testnet is live. Sepolia, the first of the long-running public testnets, is scheduled to undergo an update on February 28.”
Shapella includes many features. Full withdrawals will be available for validators leaving the system, while partial withdrawals will be available for active validator balances exceeding 32 ETH.
The Ethereum Merge update took place on September 15, 2022 and moved the network from proof-of-work (PoW) to proof-of-stake (PoS). As a result, ETH abolished mining and started staking, which is the process of locking a certain amount of coins on the network in exchange for rewards.
However, to become a Verifier, it was necessary to lock at least 32 ETH.
Investors have been locking 32 ETHs in their staking accounts since 2020. However, they were unable to withdraw their funds. This is where the Ethereum Shanghai Upgrade comes in. The upgrade will introduce Ethereum improvement proposal EIP 4895 and add withdrawal functionality.
American banking giant JPMorgan wrote in a recent report that enabling withdrawals will increase stakes in ETH over the medium term:
“Assuming the staking rate will approach the 60% average of other major PoS networks over time, the number of validators could rise from 0.5 million to 2.2 million and the rate of return could drop from the current 7.4% to about 5%.”
*Not investment advice.
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