Ethereum to Implement “Shanghai” Upgrade on Sepolia Testnet

Sepolia testnet to launch in Shanghai

The Ethereum Foundation updated the test schedule on the 21st for the next upgrade of the crypto asset (virtual currency) Ethereum (ETH), “Shanghai (Capella)”.

The “Shanghai” upgrade on the testnet “Sepolia” is scheduled to launch at “epoch 56832”, which is expected at 1:00 on February 29 (Japan time). The Ethereum Foundation has announced the release of “Shanghai” client software on Sepolia’s GitHub repository.

Sepolia is a testnet with private (granted) validators. This is in contrast to the Goerli testnet, where public validators participate.

The timing of the implementation of the Shanghai upgrade on Goerli and Ethereum mainnet is planned to be announced later. Through the Shanghai implementation process on the testnet, service providers such as cryptocurrency exchanges and staking pools will check the withdrawal behavior of staking ETH before going live.

Although not officially announced, according to Ethereum News, the Shanghai implementation in production may be launched around the end of March or April.

On February 8, 2023, it launched “Shanghai (Capella)” in Zhejiang, a dedicated testnet for Ethereum’s staking withdrawal tool.

connection:What is the ETH “Shanghai” upgrade?Summary of each company’s view on staking cancellation and ETH selling pressure

Market Interest in ETH Withdrawal Feature

The “Shanghai” upgrade includes several improvement proposals to improve the development environment, but the main purpose is to unlock the withdrawal function of validators.

Each Ethereum validator stakes 32 ETH and is rewarded with an annual interest rate of 4% to 6%. However, you will not be able to end staking or withdraw rewards until the Shanghai upgrade is complete.

According to the official website, as of February 17, Ethereum had 516,000 validators, and 16.5 million ETH (approximately 3.5 trillion yen), or 13.85% of the total ETH supply, was locked in staking contracts. . Approximately 1.03 million ETH has been accumulated as validator rewards.

Many cryptocurrency market players are paying attention as these ETHs will be available for release to the market for the first time.

While the exact length of time is uncertain, a reasonable estimate to keep in mind is 2-7 days.

In the best case, withdrawal requests can be processed within hours without requiring a validator exit.

—Lido (@LidoFinance) February 22, 2023

Lido, which accounts for about 29% of the ETH staking market share (4.83 million ETH), is also preparing an ETH redemption function in conjunction with the Shanghai upgrade of Ethereum.

The ETH withdrawal method in Lido has a default setting of “turbo” mode that allows for the fastest withdrawal, and a “bunker” mode that is activated in an emergency when a large number of slashes (ETH2.0 penalty) occur. It is explained that it takes 2-7 days for the withdrawal period in “turbo” mode.

connection:ETH staking major Lido to implement withdrawal function in V2

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