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