200 days after The Merge – The network Ethereum celebrates 200 days since The Merge. The Merge marked the long-awaited transition from Proof of Work to Proof of Stake. The network is now preparing for the hard fork shanghaischeduled for April 12.
200 days after The Merge: the effects on Ethereum tokenomics
Last January, 100 days after The Merge, we were taking stock. On this occasion, we were able to observe a decrease in block time as well as an even more drastic drop in the number of ETH issued.
On the 200-day anniversary of The Merge, let’s take a look back at some network data. As 100 days ago, the reduction in the issuance of ETH per block as well as the mechanisms for destroying ETH continue their work.
In effect, total ETH supply decreased by 78,190 ETH from The Merge. In practice, the issuance of ETH currently presents a annual deflation of the order of 0.117%.
For comparison, Ethereum had a annual inflation of the order of 3.411% before The Merge. If The Merge had never happened, the total Ether supply would have increased by 2.2 million, or more than $4 billion at the current price.
>> Need to store your cryptocurrency safely? Ledger offers you $20 in BTC for the purchase of a Nano S Plus key (commercial link) <<
Hard fork Shanghai: the release of ethers in staking soon
From now on, the various teams of developers are preparing for the hard fork shanghai. Scheduled for April 12, this will allow validators to withdraw their ETH deposited in staking. However, depending on the staking method (centralized pool, solo staker, etc.) the process and the deadlines will not be the same.
For example, Coinbase will start accepting withdrawal requests 24 hours later the end of Shanghai. Moreover, faced with a likely high demand, the platforms warn that the withdrawal process could take weeks or even months.
On his side, LidoFinancethe most fashionable liquid staking solution, provides that the stETH withdrawals will not be not available on the main network before mid-May. In the meantime, they need to finalize completed code audits and want to maintain a two-week safety margin.
The potentially long delays are mainly due to restrictions put in place by the developers. In order not to face too massive a flight of ETH, only 16 partial withdrawal requests (consisting of staking rewards only) can be processed every 12 seconds approximately.
At the same time, full withdrawals, when validators withdraw entirely from the Ethereum blockchain, could also take a relatively long time.
Anyway, if you are validators on Ethereum, you will have to preparing for the launch of the Shanghai hard fork. Indeed, depending on the service used, you will probably have actions to perform.
Your ETH have great value and deserve maximum protection! To sleep with peace of mind, equip yourself with a secure Ledger hardware wallet and receive up to $30 in BTC for the purchase of a Nano key. Your security is priceless (commercial link).