Shanghai Upgrade Has Executed on Testnet but Not Without Issues

The ability to unstake Ethereum from the Beacon Chain is now just one step away for Ethereum validators.

The Shapella hard fork has been carried out on the Goerli testnet, which is the final test run before Ethereum validators can withdraw their Ether from the Beacon Chain.

Hard fork issues

However, there were issues with the hard fork. According to Tim Beiko, an Ethereum core developer, a number of testnet validators did not update their client software prior to the Goerli fork, making deposit processing less efficient than it could have been.

Deposits are being processed (https://t.co/CxYtPcGMCp), but it seems like several validators haven't upgraded. Looking into it
One challenge with testnet validators is that given the ETH is worthless, there's less incentive to run a validator/monitor it.

— timbeiko.eth (@TimBeiko) March 14, 2023

He attributes it to testnet validators having “less incentive” to upgrade because Goerli ETH is “worthless,” but he expects validators to make the necessary changes before the Ethereum mainnet fork.

Ethereum researcher “terence.eth,” says that Shapella’s fork onto the Goerli testnet took 15 epochs because network participation was less than two-thirds:

15 epochs later, Goerli has finalized.
There was nothing wrong with the Client software. We just had to get the offline operators to upgrade. It was a good stress test.
On to the next one. Mainnet! https://t.co/s573n5pC9f

— terence.eth (@terencechain) March 15, 2023

Through Ethereum Investment Proposal EIP-4895, stalled ETH from the Beacon Chain will be “pushed” to the execution layer.

Because it brings Ethereum one step closer to a fully functional proof-of-stake system, EIP-4895 has been the most eagerly awaited of the five EIPs that comprise the Shapella upgrade.

Shapella’s launch time

Shapella is expected to be implemented on the Ethereum mainnet in early April, following a few hiccups in getting the Sepolia and Goerli testnets ready for the fork.

The hard fork will allow for partial and full withdrawals, and when Shapella is forked, it will theoretically unlock 17.6 million ETH, which is worth more than $30 billion at current prices.

The Ethereum Foundation declares that several mechanisms are in place to prevent a flood of ETH supply from entering the market.

A cumulative 17.6 M $ETH (~$27.3 B USD) is currently staked on the Ethereum Beacon Chain.
50% staked $ETH comes from Liquid Staking protocols (led by @LidoFinance at 29%) and CEXs (led by @coinbase at 12%),
Of the CEXs, only @krakenfx (7%) announced that they’ll be unstaking. pic.twitter.com/1p3FAsq00V

— ParaSpace (@ParaSpace_NFT) March 8, 2023

Because only about 2,200 withdrawals can be processed per day, the total number of withdrawals allowed in a 24-hour period will be approximately 0.40% of the total amount of ETH staked.

This is because an epoch is typically processed in five or six minutes and can only be assigned a maximum of ten validators.

If each of the 2,200 validators withdrew the full 32 ETH staked each day, only about 70,000 ETH, or a small portion of the 17.6 million staked, would be withdrawn.

EthStaker broadcast a live video of the execution on Goerli on March 15.

We're going LIVE in ~10 minutes to discuss the Goerli Shapella Upgrade
Watch here https://t.co/PDFvmqyFGM

Content Source: cointelegraph.com

— r/EthStaker (@ethStaker) March 14, 2023