Ethereum Shanghai Upgrade on April 12, 2023
Another significant upgrade for Ethereum is now imminent, following last year's switch from proof-of-work to proof-of-stake consensus mechanism. Until now, validators have been continuously receiving rewards without being able to cash them out, but with the release of the Shanghai Upgrade on April 12 at 10:27 PM UTC (epoch 194048), all rewards earned by validators will become liquid, just over 1 million Ether in total.
Clients do not have to take action
Clients do not have to take action to protect their investment. Bank Frick monitors the upgrade on an ongoing basis. It should be noted that the trading of ETH will not be possible around 1 hour before and up to 1 hour after the upgrade.
We expect a huge increase in staked Ethereum after Shanghai, as the upgrade now gives users the flexibility to stake without having their ETH locked indefinitely. Currently, Ethereum has a staking ratio of only about 15%. Bank Frick, as the European pioneer of blockchain banking, is working on providing Ethereum 2.0 staking to its clients in the near future.
The Shanghai Upgrade was already successfully implemented on test networks, so there should be no major issues on the main net. However, we expect a longer entry queue shortly after the upgrade as many validators join the network.
If you have any questions about the upcoming Shanghai Upgrade, please do not hesitate to contact your client advisor.