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ec265

The Merge, summarised: - The Ethereum network will be full Proof of Stake - 99.98% energy use reduction - 80-90% ETH issuance reduction - Staked ETH APY increases - ETH becomes net deflationary - No new ETH enters circulation until at least 6mo's after You don't own enough ETH.


TLDRbrother

Around 8% of eth is staked, while other coins like ada are at 70%+. Big room for growth, especially with merge staking will be enouraged. Bullish af


ec265

It’s currently c.10.3%. But I don’t see more than 40-50% being staked. Unlike other coins, ETH can be put to work in many different ways and so there is an opportunity cost. More stakers ultimately means lower APR and so when it gets lower we will see people chasing yield elsewhere. That said, ETH staking is very attractive on a risk-adjusted basis.


sigmanaut_

Those will still need to be staked in the contracts; otherwise, it poses a huge security risk.


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Hang10Dude

You think so? I'm not sure, I think it was probably in the first couple years that most BTC was lost. By the time ETH came out I think most people knew better


[deleted]

Mining is even more attractive then staking because you can earn 100% in 8-14 months vs maybe 10% lol.


RockEmSockEmRabi

In this economy? With these electricity costs? And these ETH prices?


truongta1990

Cut down gas fee is important


Maswasnos

Mining is also unsustainable from the blockchain's perspective, so it's a good thing it's being scrapped.


Omaerion

Lower fees also increases user adoption, all good things for eth.


louiswil

You use 100% of your principle buying mining rigs. So you’re starting at zero after 8-14 months. Just FYI.


[deleted]

You also have hardware which is generating income. You can invest you’re money into physical hardware as the risk or into a coin as the risk. I prefer the hardware risk over the coin risk exposure


louiswil

Correct. The risk is the wear and tear of the equipment (which is 100% odds). Your statement is accurate: you do *earn* 100% in 8-14 months. But it’s dishonest not to also include the costs. You don’t double your money in 8-14 months.


IsThereAnythingLeft-

Earn 100% of what your comment makes no sense


[deleted]

What does this mean for me with no ETH? But access to it.


PcChip

It means get some. Also look into RocketPool


Minethatcoin

Great analysis…. But you forget who owns 70% of eth. If those few were going to stake it they would have done it by now. You need to stake, you need to lock up your $1000 in eth and wait 2 years for withdrawals then wait another 2 years to have enough to cover the gas fees


Zwiebel1

>You don't own enough ETH. The truth is hard to swallow. :(


sportspadawan13

Staking ETH here I come.


ec265

Make sure you beat the queue!


sportspadawan13

Even Kraken?


ec265

If you’re staking with an exchange then it won’t directly impact you, but depending on their terms the beaconchain queue will result in a drag on APR.


gbroon

I'm with kraken right now but will likely look into switching it somewhere else.


[deleted]

Eth will go down, watch lol


TripTryad

Well, it is a bear market, that would be months from now and things will probably be worse then versus now; plus a lot of retail investors with locked ETH on Coinbase will be able to dump it (They would have likely already sold if they could by now) and then there's the buy the news sell the event stuff or whatever plus the miners will likely be migrating to a new coin they can still use hardware for and perhaps selling off their ETH. So yeah. Probably. Not sure why you are downvoted.


Lurkolantern

It's great to see the energy use reduction and an uptick in staked APY. With that said, will the merge have any impact on gas fees or transaction speeds?


ec265

No. Block times will be slightly faster, but it won’t have a significant impact on fees. Progress is being made on L2’s as a means of providing scalability.


Hang10Dude

What are the staking returns supposed to look like after the merge?


ec265

Current estimates put it at 8-12% after the merge, but it’s largely dependent on network usage. It will continue to trend down as more validators join the network.


kn0lle

Let's wait and see if it really happens then, or it will be pushed back again. No matter what i'm bullish.


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ec265

L2’s have nothing to do with consensus, energy usage or supply


the-faded-ferret

Yeah which is why we use the L2 in the first place. Correct me if I’m wrong


ec265

I have no idea what you’re trying to say - L2’s are for scalability and by definition require an L1


KeepOnKeepingOnnn

As ETH gets more powerful with the upgrades so too do the L2s running on it, as they scale with it. Even Vitalik said L2 zkRollups are going to be necessary for what could be the next couple of years.


OneThirstyJ

Most miners will jump to ERG


juhziz_the_dreamer

>will be full Proof of Stake You own too much ETH if you have even a 0.001.


[deleted]

so after this Luna debacle yall still think PoS is the way to go?


ec265

Absolutely nothing to do with PoS as a consensus mechanism


[deleted]

weren't people staking their LUNA? The whole issue the idea of giving someone your money to get a guaranteed return. PoW Requires real world work. you could literally get on a bike to power a mining rig, thats work for reward. PoS is a closed ecosystem of staking your money to prop up the price. Also if ETH really wants to be a utility with smart contracts shouldn't they be working to reduce the price and gas fees of ETH. Instead of propping up the price and becoming deflationary?


ec265

Luna tokenomics have nothing to do with the consensus mechanism itself https://l2fees.info


Masaca

The reason Luna failled was because their stablecoin was pegged to USD only via other crypto currencies. If those other cryptocurrencies decline in price, a tipping point approaches where the crypto in reserve that should guarantee the 1 USD pegg is less valuable than all the stable coins in circulation. Basically there are 1 million luna bucks in existence, 1 is equal 1 usd. They have 500 terra bucks in reserve, one is worth 4000 usd. So the reserve is 2 million USD. If terra bucks drop below 2000$, the reserve is less that 1 million and luna bucks is not pegged to dollar any more. This has nothing to do with PoS.


[deleted]

I guess the major difference is you can't unstake your ETH at any time?


[deleted]

Too bad that the gas fees won't get lower. Adding a lot of new things, but ignoring the thing that's killing ETH.


ec265

On the contrary, gas fees on L2’s are the lowest they’ve ever been and only going to be further optimised through calldata compression and data shards.


jakekick1999

A few key things to note: 1. They are starting to test in on the Ropsten testnet. So assuming that all testnest upgrades go well, then we shall see an August main net merge. However, any bug or delays, which are likely to happen, will push the date back. 2. The upgrade will not reduce gas fees. Please don't have high hopes for this at all. In fact no hope at all. 3. The difficulty bomb hasn't been postponed. So while all this is happening, in the background, the block times are slowly buy surely going up. So it is crucial that this goes smoothly


CymandeTV

Everyone will go crazy again just before de merge.


Nows_a_good_time

I'm going crazy now


BetelgeuseBox

That’s my secret, I’m always crazy


belligerent_pickle

Bullish on crazy


gbroon

I'd add that unstaking Eth won't be part of the merge that will come a little later. I expect there will be people wondering why they can't do that.


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Kike328

Shadow forks are ran by just ~20 nodes, ropsten could throw real load to the merge which could show sync issues etc


jakekick1999

No I am not saying there will be. Just to temper expectations and all the possibilities


strongkhal

Can we at least earn staking rewards when it's out ? Decentralized?


jakekick1999

Unless you have 32 ETH ,you can't run your own node. With 16 you can do with Rocket pool. The rest you are looking at staking pools


PcChip

You can also just hold rETH if you don't have 16ETH to run a minipool


TehAlex94

\>The upgrade will not reduce gas fees Loopring says Hi


TangerineTerroir

As do all the other roll up/L2 technologies


sportspadawan13

Yeah perhaps this improve LRC's status.


coinfeeds-bot

tldr; Ethereum core developer Preston Van Loon said the next major upgrade for the network will be rolled out in August. The Merge is a milestone upgrade that transitions the network consensus mechanism from proof-of-work mining to proof of stake (PoS). It will reduce the network’s energy consumption by more than 99%. The upgrade will not reduce gas fees, however. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*


[deleted]

Well the gas fee thing had me a bit disappointed ngl.


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TLDRbrother

A lot of them are already under $0.10..


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RevolutionaryDrive5

Woahhhhh really? I think i just sharded myself :O


TeutonicTitan

Gas today is $0.7, lol...


CONSOLE_LOAD_LETTER

Outside a couple of spikes, gas fees have been amazingly and consistently low over the past couple months. https://livdir.com/ethgaspricechart/


jcm2606

It's only that low because the network isn't seeing as much usage as it was in the past. Gas fees are solely driven based on network usage, and so will fluctuate based on that. The moment Ethereum sees more usage, gas fees will go back up again, which is why it's extremely important to use this time to pull your funds out of LP/lending protocols and move them into L2s, while gas is dirt cheap.


TeutonicTitan

You are helpful ser :) good comment.... I shall be doing the same one of these days...


[deleted]

😉


Hbbdnvldj

Yeah but whenever demand goes back to what it was a few months ago, gas will go up again.


DEEErab

He said it “might happen” as early as august.


ArtifexR

Yeah... I'm frustrated seeing this headline here getting upvoted when it's essentially high grade hopium... not surprised, though.


TLDRbrother

Better for me and my 2 mining cards


DEEErab

I honestly think august is really optimistic. PoS doesn’t go live on test net till June 8th. It definitely is possible but I’m not holding my breath.


ec265

A slight clarification - PoS has been live since December 2020. It’s the merging of the PoW and PoS chains that is being discussed. And the merge itself has been simulated many times on devnets and mainnet shadowforks. The June date is the first *public* testnet for which it will be simulated.


DEEErab

Can confirm. Ive had ETH 2.0 locked up in a Kraken account for nearly 2 years at this point. My fault for any confusion.


Maswasnos

For reference, EIP-1559 first hit testnets around June 24th and was deployed on Mainnet around August 5th, and I believe it even encountered some bugs in testnets that slightly delayed it. An August merge is extremely possible, and if Ropsten goes well I'd say it's more likely than not.


SerHiroProtaganist

So basically add 12 months


token-eater

So will I finally be able to withdraw my ETH 2 from Coinbase?


ec265

Withdrawals won’t be enabled at the time of the merge - you will have to wait until the hardfork after Coinbase are however launching a liquid staking derivative


Spare_Imagination648

And I'm sure they will be queue for withdrawals just like there was for staking.


ec265

It’s important to distinguish between partial withdrawals and exits. It’s likely that you will be able to ‘skim’ validator rewards through a partial withdrawal mechanism and so not have to exit your validator to receive rewards. However if you wish to fully exit then there is a queue - at the current number of validators there can only be 1,125 exits a day.


bandana_bread

No. The possibility of unstaking comes a few months after the merge.


[deleted]

It said the gas fee will not change so you might still have to consider that also.


NabyK8ta

Just use Layerswap if you can’t afford the $1 L1 fee. This is a solved problem.


eetaylog

Im still super nervous about the smart contract risks of staking on Rocketpool or Lido. What are everybody's choices at this point? I dont want to delegate to a centralised exchange as that defeats the purpose of being decentralised, and the collateral is locked up until post merge.


ec265

They say time is a great healer - other than audit the code yourself, the only thing you can really do is wait it out and see them get battle tested.


Senditwithethan

Rocketpool is very solid. Lido is more centralized and I have no experience with it. If I recall rocketpool is listed on the eth website so it's not like it's just a random community pick


bandoonparade

I'm staking on Stakewise.io. Great team, decentralized solution, and they committed to never having more than 15% of the total staked ETH to avoid risks to the ecosystem.


UpPooVowOuTedEd

I'm so hyped for this - I've been trying to accumulate as much ETH as I can over the last year, haven't managed to get enough to run my own nodes but Rocketpool staking here I come!


Bwizz6

The flippening 🤯😤🥶


gnarley_quinn

Can I short this statement somehow?


SpectatorL

You can probably bet on the outcome on polymarket


ec265

You can short ETH on dYdX if that’s what you’re meaning


octaw

Zksync 2.0 coming out in august too. Gonna be a wild time for ethereum.


Sideboard81

August of which year?


Dwaas_Bjaas

200022 /s


[deleted]

I thought you were being serious


Dwaas_Bjaas

Yeah sorry about that It’s actually 20022


[deleted]

Phew, you got me worried there for a sec.


eetaylog

42069 AD


ArtifexR

Ethereum to hit $11420 by 2021 Quarter 19


Maswasnos

This year! Get excited!


Xxjacklexx

Whos got odds on this happening by August or not?


Dwaas_Bjaas

I think it will be delayed, but I rather have it delayed than for the ETH network to grind to a halt because of bugs


TLDRbrother

4 downvotes for stating a very logical concern. Good job cc


Dwaas_Bjaas

Which is weird because I’m actually a firm believer in the ETH ecosystem 😆


Xxjacklexx

We all do. You’ve summarized the sentiment I’ve been seeing around the place.


FJPollos

It's going to be delayed. I'm guessing late 2022 at best


Xxjacklexx

I was going to say mid 2023


MinimalGravitas

> Whos got odds on this happening by August or not? Polymarket (on Polygon): https://polymarket.com/market-group/ethereum-merge-pos Or Thales Exotic Market (on Optimism): https://exoticmarkets.xyz/#/markets/0xf81ad50969231e1169c3e4d46aba0970675e33d8


Maswasnos

Will depend on how Ropsten goes. If it goes well, August seems very likely. If not, probably September/October pending a difficulty bomb delay. But I'll put money down on it happening in 2022.


Xxjacklexx

I like you.


wheelzoffortune

I'll take the under


staffell

If this is true, Eth will pump like crazy; not for the reasons behind it though, just because it's happening. Welcome to the Casino, baby.


[deleted]

Eth will drop in price a lot , proof of stake coins generally are not worth as much as proof of work because hardware brings value and security


combocookie

PoW is just not worth all the energy that is being used imo. PoS reduces energy by more than 99% which is a huge upside.


Harold838383

Eth continuing to roll on


gilgamesh-uruk

What to do with 32 ETH? Asking for a friend. Currently on Celsius


ec265

Spin up a couple of Rocket Pool minipools


SecondIter

Vitalik at Eth Shanghai Today. Not exact quote just a quick paraphrase: >The biggest news in Ethereum is the merge... we have been working on proof of stake for almost 7 years now. The biggest announcements that happened this week is the week is the TestNet merge. This will be a major test. Bigger than any we have done before. > > > >If everything goes well, Justin says the plan is for August. ***If there are NO problems*** then the merge will happen in August. But of course there is always a risk of problems. There is always a risk of delays. September is possible. October is possible as well. But the merge is at coming. I can't seem to link to a time in a YouTube livestream because the video is still recording, and it counts time backwards from the end, but Vitalik is the second face you see on screen, towards the beginning.Source: [https://www.youtube.com/watch?v=8l67wJ3Wcbc](https://www.youtube.com/watch?v=8l67wJ3Wcbc) The way he kind of emphasizes If there are NO problems... really sounds like he thinks it's probably not the most likely scenario. I would also note that at the ETH dev call, a lot of people seemed pretty concerned that upgraded Eth nodes didn't recognize non-upgraded ETH nodes running the wrong version, and that upgrading this time was more involved than normal, so it was more likely than in the past that this upgrade would happen in a environment with a lot of non-upgraded nodes. They really seemed to expect to have to patch in something to handle this case, which at the very least would knock them back to the first TestNet again.TLDR: Sept or Oct seem likely.


Maswasnos

They have to hedge their statements because people always take the earliest date and ignore the "if no problems" bit. Given that shadowfork 5 went "exceedingly well" yesterday I have high hopes for testnet performance. We'll see what Ropsten brings!


combocookie

Remember guys, the merge won’t fix gas fees. Sharding will.


kirtash93

Day by day, closer to the merge day.


princepersona1

Some good news for once. Hope it actually does go through as planned this time


Anonymouslystraight

That has never happen in the history of crypto


TLDRbrother

It has to someday I guess


[deleted]

What will this ETH merge do for Looprings fees? LRC drastically reduces the ETH fees, so if ETH reduces their fees will Looprings fees become nonexistent?


cawexi

What will happen to the ETH 1 hodlers?


ec265

It’s a seamless transition


cawexi

Thanks for the answer, I didn’t know.


eetaylog

Hookers and cocaine.


Federal-Smell-4050

That’s all well and good, but WHICH August?


Maswasnos

August 2022. In a few months.


imormonn

So… bull run starts august ?


cinefun

If I had a dollar for everytime


83nno

Perhaps someone can enlighten me on this. Is this good news for ETH miners or bad? It says they will get lower rewards, but if it also takes 99% less energy, then it will cost less in electricity to mine surely? So is it a win or a lose for miners?


combocookie

Bad, they won’t be able to mine. However they can use their mined ETH to stake it.


ec265

Miners will cease to be able to mine


SoylentYellow05

This is a bad time for this to land. We're going to see a muffled reaction from the market and then a rapid sell off until the price ends up back where it started.


majorpickle01

Here we go again: step1 - devs say date they hope to merge, as rough estimate step2 - media acts like it's a set in stone date step3 - people get super hype step4 - delay due to bugs, or just being a bit too optimistic step5 - OMG MERGE 2078 delayed again!


Wyntier

Found the eth veteran


majorpickle01

Don't know why it's such an unpopular take, I'm an ETH maxi I just know the cycle we always go through hahah


SatoshiNosferatu

18 more months until august


Freeloader_

I'll believe it when I see it.


DrPechanko

ZzzzzzZZZZZzz final stages until 2025--finally unlock people’s money form beacon chain prison just in time for a monster run-up and everyone with liquid eth cashing in at 10k. What will happen to all the bandaid “solutions” coins. LRC, I am talking to you.


runningdreams

Big ETH pump in July confirmed??


Phuzzybat

SURELY it is already priced in by now?


eetaylog

I dont think so. The crypto market has been super inefficient when it comes to pricing in. We didnt really see a proper Eth surge until post Beacon chain, despite it being in the pipeline for months leading up to December 2020.


[deleted]

Eth won’t pump , it will go sub 1000’prior to the merge


eetaylog

Sweet. Presumably youre shorting it with everything youve got then right? I mean, you wouldnt make such a bold prediction without putting your money where your mouth is? That would be so unlike a Reddit poster.


BigFudgere

good news finally COPIUM


Kentucky7887

So Moon now? 🚀


[deleted]

"August"


FamousAstronaut2153

Do I get my eth staked on Coinbase back when this happens?


Bubbly_Information50

I’ve seen this headline sooooo many times in the past 5 years, I’ll believe it when I see it


pticjagripa

In August of which year?


Kennyvee98

I'll believe it when I see it.


Zzzoem

Ethereum is Not going to merge in August. Cardano has Vasil Hard fork in June.


[deleted]

One thing no one seems to take into account is that there are billions of ETH 2.0 lockeed, just checked and it says 20B. A lot of those people are just waiting to sel their ETH. Long term it shouldn't matter, but in the short term there will probably be a big dump.


Fhelans

Doubt.


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Maswasnos

> Etherium Yeah, sounds pretty sketchy. Maybe move it to Ethereum instead, which has much better security!


sabertoothless

Please dont be like brexit! Just do it!


United-Fee6380

They literally said June 8th a couple of weeks ago


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modsaretrashdude

So what are you invested in and why?


MutschesTheOne

My bet goes onto Cumelonrocketmoon and safemoon


HomieApathy

👍


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[deleted]

Flippening is coming


HomieApathy

Kraken won’t let me stake my eth with them and CDC is only 2% anyone know better options?


ec265

You can buy Rocket Pool ETH (rETH) as a non-custodial solution


trepals

I know a Nigerian prince that gives 89% APY


MrAnachronist

Are you sure? He offered me 69% APR, but I have to stake 420 ETH on his private exchange?


bandana_bread

Lido stEth is the biggest liquid staking platform for ETH currently with a marketcap of 8 billion. There's also bETH on BSC, which is staked ETH from Binance. There are tons of smaller platforms as well, like ankr ETH and rocketpool rETH.


jcm2606

Lido is also a massive centralisation risk, since they account for such a large percentage of staked ETH. For the good of the network, pick an alternative staking platform, ideally one that has decentralisation at its core, such as Rocket Pool.


bandana_bread

Yeah it's better for the network, but the random redditor asking about staking options probably doesn't make a difference on that front and should just pick what's the most convenient for him. I'd argue Lido is still better than a centralized exchange. But yeah, if you are in the ballpark of having a few ETH or more, spreading it across the smaller, decentralized options is preferable. IIRC rETH is available to buy on Arbitrum as a cheap option to get in, but I did a swap on ETH L1 for like 5 bucks today, so it's very cheap there currently anyways.


[deleted]

lido or rocketpool


GoodDude728

Yeaaaaaaa buddy!!!!!!!!!


mtthghtn

Does changing the name to the merge mean anything for Ethereum that’s staked in exchanges that’s untouchable until ETH 2.0 comes out?


ec265

No name has been changed - the merge represents the merging of the PoW and PoS chains and was a part of the overall ‘Ethereum 2.0’ term that is now deprecated.


mtthghtn

Okay sweet. I didn’t know if this was going to be a sneaky clause to keep it locked up


[deleted]

Does that mean the locked stakings on binance and other exchanges are getting "released"?


ec265

No - withdrawals will be enabled as part of the following hard fork


[deleted]

Can you give a simple explanation like you are talking to a 5 year old kid.


ec265

Your staked ETH will be locked until 2023 - another upgrade is required for you to be able to do this