Shapella Hard Fork Unlocks $30B of Ethereum – Mainnet Launch on Track

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Ethereum’s Shapella Hard Fork

• Ethereum’s long-awaited Shapella hard fork has been successfully executed on the Goerli testnet.
• The Shapella upgrade comprises five different Ethereum Improvement Proposals (EIPs).
• This hard fork introduces partial and full withdrawals and unlocks 17.6 million ETH, amounting to over $30 billion at current prices.

Successful Testnet Execution

Ethereum’s Shapella hard fork has been successfully executed on the Goerli testnet, the final test before Ethereum validators can withdraw their ether from the Beacon Chain. However, some validators failed to upgrade their client software ahead of the Goerli fork, causing delays in processing deposits due to lack of incentive for testnet validators having „less incentive“ to make the upgrade given that the Goerli ETH „is worthless.“ Deposits are being processed, but several validators have yet to upgrade.

Shapella Upgrade EIPs

The Shapella upgrade comprises five different Ethereum Improvement Proposals (EIPs), with EIP-4895 being the most anticipated, as it will push staked ETH from the Beacon Chain to the execution layer, bringing Ethereum one step closer to a fully functional proof-of-stake system.

Unlocking Funds

Shapella is set to roll out on the Ethereum mainnet in early April, following delays in preparing the Sepolia and Goerli testnets for the fork. This hard fork introduces partial and full withdrawals and unlocks 17.6 million ETH, amounting to over $30 billion at current prices. These funds have been locked up since December 2020 when launching Ethereum’s PoS Beacon Chain.

Preventing Market Flooding

The Ethereum Foundation has implemented measures to prevent a flood of ETH from hitting the market by capping withdrawals at 0.40% of total staked ETH with only 2200 withdrawals processed daily

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