Ethereum Developers to Focus on Withdrawals of Staked Ether in the Shanghai Upgrade

Crypto coin with Ethereum logo inside a futuristic machine.

Ethereum developers decided during their first All Core Devs meeting of 2023 to launch the Shanghai Upgrade in March and will enable the withdrawal of staked Ethereum (stETH) locked since the launch of the Beacon Chain.

Ethereum Developers Priority Withdrawal of Staked Ethereum

Tentatively scheduled for March 2023, the Shanghai Upgrade was expected to introduce EIP 4844 (proto-danksharding) to make Ethereum more scalable through sharding to boost network throughput, along with five other EVM upgrades.

However, in the first call of 2023, Ethereum developers agreed to remove Ethereum Virtual Machine Object Format (EOF) from the upgrade. This ensures no delay in the unstaking of the 15.9 million ETH locked by 496k validators.

March remains the tentative target for the hard fork, as Shanghai will only change codes to ensure the unstaking of ETH. To make the upgrade smooth and resource-efficient, the developers will release public testnets later this month.

What to Expect from the Shanghai Upgrade

Ethereum developers decided to remove EOF from the Shanghai Upgrade as it would have delayed the hard fork by at least a month. EOF would introduce a new contract format and make EVM more easily upgradeable.

Development and testing of the EOF will continue, with developers expecting it to be the next upgrade after Shanghai’s launch. Developers will discuss whether to include it with the proto-danksharding launch in a few weeks.

On the Flipside

  • Despite the massive amount of ETH staked, a recent report suggests that only 20% of the 15.9 million ETH coins are in profit.

Why You Should Care

Although there is the possibility of unstaking ETH driving the next bull run, it could also mean an increased sell pressure for ETH due to the massive amount returning to the market.

Read the piece on staked Ethereum losing below:
Only 20% of All Staked Ethereum (stETH) is in Profit, Lido Finance Leads Staking

Find out what Ethereum’s founder is bullish about in 2023 below:
Ethereum’s Vitalik Buterin Says He’s Most Bullish About the Introduction of Rollups in 2023

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia