Unchained How Will ETH React to Ethereum’s Shanghai Upgrade? - Ep. 467
14 snips
Mar 14, 2023 
Christine Kim, Vice President of Research at Galaxy Digital, shares her expertise on Ethereum's evolution. She discusses the Shanghai upgrade, highlighting how it will enable staked ETH withdrawals and the potential influx of institutional stakers. Christine explores the implications for ETH's price, suggesting minimal impact, and explains upcoming enhancements like Cancun and proto-danksharding for improved scalability. Her insights on Ethereum's decentralized development and concerns around staking centralization add depth to the discussion.
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Shanghai Upgrade Explained
- The Shanghai upgrade activates staked ETH withdrawals, a key step in Ethereum's transition to proof-of-stake.
- This upgrade is akin to "taking off the training wheels" and is expected around April 2023's second week if testing goes smoothly.
Staked ETH Withdrawal Types and Projections
- There are two withdrawal types: partial (automatic reward deposits) and full (manual principal and reward withdrawals).
- Most validators will likely sell 30-50% of partial withdrawals, while full withdrawals are expected to be less common due to liquid staking options and lower ETH prices.
Withdrawal Mechanics
- Partial withdrawals are automatic reward distributions sent to validators' Ethereum 1 addresses roughly every 100 hours.
- Full withdrawals require manual initiation and go through a separate queue with different limits than partial withdrawals.
