Ethereum Foundation To Test Withdrawals of Staked ETH

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Shan­dong Test­net Will Relaunch With With­drawals Enabled

Ethereum’s devel­op­ers are mak­ing progress towards enabling Bea­con Chain with­drawals for ETH stakers.

On Nov. 23, the Ethereum Foun­da­tion JavaScript Team said it will relaunch the Shan­dong Test­net over the com­ing days with ETH with­drawals enabled for the first time. 

On the same day, Mar­ius van der Wij­den, an Ethereum devel­op­er work­ing on the Go Ethereum (Geth) soft­ware client, tweet­ed that Ethereum client teams have launched a mul­ti-client devnet to test Bea­con Chain withdrawals.

The devnet cur­rent­ly sup­ports the Geth, Nether­mind, Lodestar, Teku, Light­house, and Prysm clients. 

Ethereum began its tran­si­tion toward Proof-of-Stake con­sen­sus in Decem­ber 2020 with the launch of the Bea­con Chain, pre­vi­ous­ly known as the Eth2 con­sen­sus lay­er. While the launch allowed ETH hold­ers to stake their tokens for the first time, users can­not with­draw their funds from the Bea­con Chain until Ethereum’s next major upgrade, Shang­hai, which is expect­ed to take place late next year.

The Merge

The Bea­con Chain oper­at­ed inde­pen­dent­ly of Ethereum’s Proof-of-Work (PoW) main­net until the Merge uni­fied the con­sen­sus lay­er with Ethereum’s main­net exe­cu­tion lay­er in Sep­tem­ber 2022. The upgrade boot­ed min­ers from the net­work, pre­cip­i­tat­ing a 99.8% reduc­tion in the network’s ener­gy con­sump­tion and an 88% drop in new Ether issuance — paving the way for ETH to become a defla­tion­ary asset.

The update on ETH with­drawals comes after an esti­mat­ed time­frame was removed from Ethereum’s website. 

The Ethereum Foun­da­tion orig­i­nal­ly pro­ject­ed that the Shang­hai upgrade would enable with­drawals between six and 12 months after The Merge, but Tim Beiko, an Ethereum devel­op­er, recent­ly told Coin­Desk that the ini­tial esti­mate was based on the aver­age time tak­en between past upgrades.

Gabe Hig­gins, the orga­niz­er of the Tam­pa Bay Bit­coin con­fer­ence, argued that Ethereum is not trust­less because net­work par­tic­i­pants are reliant on oth­ers to enable withdrawals.

“The biggest con­cern I see is the fact that *some­one* has the con­trol to enable this,” Hig­gins said. “With­out a date or trust­less mech­a­nism to turn on baked into the SC means there is a trust­ed par­ty involved. This is a huge blun­der & secu­ri­ty risk.”

‘Held Hostage’

“Most peo­ple com­plain­ing have already staked due to soft-promised time­lines that appear to be mean­ing­less,” tweet­ed Phteven­strong, founder of DeFi Dojo. “I agree that ETH will even­tu­al­ly be unstake­able, but I also agree it’s absurd to hold staked ETH hostage indefinitely.”

Teams work­ing on Ethereum clients took the reins on build­ing out with­drawals ear­li­er this month.

On Nov. 12, van der Wij­den tweet­ed that devel­op­ers rep­re­sent­ing dif­fer­ent Ethereum clients would soon begin col­lab­o­rat­ing to enable with­drawals on a pri­vate test­net. “There’s a lodestar-geth, lodestar-nether­mind with­draw­al devnet run­ning suc­cess­ful­ly already, but we want­ed to add Prysm to the mix,” he said.

On Nov. 19, Marek Moraczyńs­ki, team lead for the Nether­mind Ethereum soft­ware client, said that Nether­mind will place a high pri­or­i­ty on work­ing towards enabling with­drawals. “Yes­ter­day, our core team unan­i­mous­ly agreed that with­drawals should be the top pri­or­i­ty,” Moraczyńs­ki tweeted.

Ether is up 3% in the past 24 hours.

https://terminal.thedefiant.io/chart/1/ETH-Price/3–1‑8?interval=1h&start=1669175363836&yAxis=Separate&dataType=ohlcv



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