Last Updated on April 12, 2023 by Bitfinsider
Following Ethereum’s Shapella update, more over 1.1 million ether — worth $2 billion — in accumulated validator incentives will be ready for claim, according to on-chain estimates.
Shapella will finally allow users and validators to access their staked ETH, which has been unavailable since Ethereum’s staking layer, the beacon chain, was implemented in December 2020. Regular depositors, independent validators, and those using staking service providers will be able to receive rewards collected over the last two years as a result of the update. These prizes will be distributed in the form of “partial withdrawals,” each representing 6% of the total 18 million ETH staked on the network.
Partial withdrawals will be delivered to up to 16 validators every 12 seconds with each Ethereum block. However, not all prizes will be claimed right away. When earning the aforementioned benefits, only validators having a “0x01” withdrawal certificate will participate in the automated procedure.
According to Glassnode, a crypto analytics outfit, just 44% have registered to claim these partial withdrawals. This implies that the remaining validators will not earn these awards until they alter their credentials when the upgrade is implemented. For the current 562,000 validator entities, the procedure would take about five days if all validators signed up to get these incentives.
Furthermore, the impact of the aforementioned partial withdrawals is distinct from the impact of full withdrawals. In terms of full withdrawals or departures after Shapella, Ethereum will enable up to 1,800 validators per day to totally un-stake, allowing up to 57,600 ETH ($109 million) in full withdrawals every day. In the first five days, this translates to a maximum of 288,000 ETH. Because only eight validators each epoch can request to depart the network and terminate their stake, this 1,800 restriction is enforced to avoid excessive un-staking.
Taking partial and complete withdrawals into account, about 1.4 million ETH ($2.6 billion) will be accessible or liquid within the first five days following Shapella. This quantity, however, indicates the theoretical maximum amount of liquid ether that might be removed, and the actual amount of withdrawn and possibly sold ether will be decided at the moment.
How to Buy or Trade ETH on Scallop Exchange
You can buy or trade ETH on Scallop. As Scallop frequently holds campaigns and events, you should check out its official Telegram group here to see if you can participate and win rewards as you trade.
On Scallop, you can trade ETH as a spot pair (ETH/USDT) in 3 simple steps:
- Sign up and register an account on Scallop
- Buy USDT via Scallop One-click Buy (Follow the step-by-step guide from step 1 to 6)
- Trade ETH/USDT at Scallop Spot
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