The Merge, a successful software upgrade that took place in September of last year, brought significant alterations to the Ethereum protocol, shifting it from a proof-of-work blockchain to a proof-of-stake protocol. This upgrade was the initial phase of the five stages of Ethereum’s development, as outlined by Vitalik Buterin, the founder of Ethereum, including “The Merge,” “The Surge,” “The Verge,” “The Purge,” and “The Splurge.” 

If you want to deep dive into Ethereum’s scaling roadmap, you can read this article where Charles Guillemet, CTO of Ledger, provides critical insights into the future of Ethereum.

Ethereum’s Shanghai upgrade is a hard fork, set to happen around April 2023, though the official date isn’t settled yet. This software upgrade will implement EIP-4895, allowing validators to withdraw their staked ETH. So far, the staked coins remain blocked on the protocol, meaning that users can’t retrieve their rewards. 

After the upgrade, validators will be able to:

The Shanghai upgrade will also include three other improvement proposals that tackle high gas fees, slow transaction processing time, and the overall performance of the network.

For Charles Guillemet, CTO at Ledger, “With the Shanghai upgrade, the completion of the blockchain migration to Proof of Stake is a significant milestone in the evolution of Ethereum. Users will be able to withdraw their Staked Ethereum, which will not only bring more liquidity to the market but also encourage those who were previously hesitant to stake their ETH due to uncertainties around locking time. This upgrade highlights the Ethereum community’s remarkable ability to adapt and update its protocol seamlessly. I’m eagerly anticipating upcoming updates that will further enhance blockchain scalability.”

Ledger Live users staking with Lido will have the freedom to stake and unstake at will. stETH holders will be able to unstake their stETH and in return receive ETH at a 1:1 ratio. Withdrawals will be handled through a Request and Claim process:

It’s uncertain how long it will take to process withdrawals – expect a couple of hours in the best case and less than a week for most requests. However, in some cases, it may be significantly longer.

Ledger Live users staking with Kiln will be able to withdraw their ETH by following these steps: 

Once the validator goes through the exit and withdrawal queues, you can go back to the Rewards tab, click the Withdraw button and claim your ETH.

It can take up to several hours or days. The length of the exit and withdrawal queues depend on various factors such as the number of active validators and the number of validators who want to exit. Only a certain number of validators can exit the queue per epoch. Currently, it’s 7 validators per epoch, with an epoch occurring every 6.4 minutes.

You can monitor the queues on https://beaconcha.in/

Retrieving your staking rewards could take some days after the Shanghai upgrade happens. You will not be able to unstake and withdraw rewards in Ledger Live the same day of the Shanghai upgrade.

The Shanghai upgrade, by enabling staking rewards withdrawals, will provide new incentives for institutions and corporates to stake their Ethereum assets. 

For Alex Zinder, Head of Ledger Enterprise, “with the coming clarity on timing of the update there is no better time than now to add ETH staking to your institutional yield strategy. Ledger is seeing great demand for ETH staking from its retail users, so, if you want to bring secure and compliant ETH staking to your retail audience, contact Ledger Enterprise.”

By staking your digital assets with Ledger Enterprise, you gain access to a seamless, secure, all-in-one digital asset management platform, a fully customizable governance framework, real digital ownership, and 100% auditable and regulatory-friendly reporting.

Learn more on: enterprise.ledger.com/interact.

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