• Ethereum developers have agreed to push the Shanghai/Capella upgrade, also known as the “Shapella” upgrade, to April 2021.
• The upgrade will allow validators to withdraw their staked ETH stored since December 2020.
• The Shanghai upgrade is expected to retain a bullish momentum for ETH and benefit liquidity staking platforms.
Ethereum Plans „Shapella“ Upgrade
Ethereum’s core developers have recently announced their plans to push the Shanghai/Capella (also dubbed ‚Shapella‘) upgrade to early April in their latest All Core Developers Execution (ACDE) call. This mainnet launch will give node operators time to upgrade their clients. Additionally, the Sepolia testnet was successfully tested last Tuesday, February 28th.
Goerli Testnet Deployment
The next step is for the Shapella upgrade to be deployed on the Goerli testnet in order to test more varied functions such as smart contracts and decentralized applications. One of these anticipated upgrades includes the phased withdrawal of Ether (ETH) from the Beacon Chain which will be part of this testing. This Goerli test is scheduled for March 14th, 2023 with an ACDE call occurring two days later on March 16th where they would „probably“ set a date for mainnet launch if things go smoothly.
Transition From PoW To PoS
The Shapella upgrade is part of Ethereum’s transition from a proof-of-work (PoW) to a proof-of-stake (PoS) mechanism which was completed with The Merge back in December 2020. Once implemented, it will allow validators to withdraw their staked ETH that has been stored since that point onward. Other upgrades include increased transaction speeds and lowered gas fees which should lead to overall market stability and less volatility associated with ETH staking points accrued over time.
Benefits Of Shapella Upgrade
The Shapella Upgrade is expected to retain a bullish momentum for ETH as well as Benefit liquidity staking platforms due its implementation into Ethereum’s protocol layer . With increased transaction speed and lower gas fees, there should be less volatility associated with ETH staking points accrued over time while providing much needed liquidity within DeFi platforms who rely on generating yield through these mechanisms .
Disclaimer
This article is provided for informational purposes only and not offered or intended to be used as legal, tax, investment, financial or other advice.