The Estimated Unlocking of 170,000 ETHs During Shanghai’s Hard Fork on Ethereum

04/12/2023 05:46 • Digital Disruptors • 103 views

On April 12th, Glassnode predicted in a report on April 11th that out of the 18.1 million ETHs on the beacon chain in the first week of Shanghai’s hard fork execution on Ethereum, an estimated 170000 ETHs will be unlocked, accounting for less than 1%. This number includes a pledge reward worth 100000 ETHs (worth $190 million) and a pledge ETH worth 70000 ETHs (worth $133 million).

Glassnode: It is expected that less than 1% of the pledged ETH will be unlocked after the upgrade of Ethereum Shanghai

Introduction

On April 12th, Glassnode reported an estimated unlocking of 170,000 ETHs during the first week of Shanghai’s hard fork execution on Ethereum. This number accounts for less than 1% of the 18.1 million ETHs on the beacon chain. In this article, we will explore the significance of this unlocking and its potential impact on the Ethereum community.

Overview of Shanghai’s Hard Fork

Shanghai’s hard fork is an Ethereum upgrade that aims to improve the network’s scalability and efficiency. This hard fork will include the integration of the Ethereum Improvement Proposal (EIP) 1559, which will change the fee structure of the network. It will aim to create more predictable transaction fees for users by adding a base fee and a tip fee.

Understanding the Estimated Unlocking of ETHs

During the hard fork, users who have pledged their ETHs will be able to unlock them. The estimated unlocking of 170,000 ETHs includes a pledge reward worth 100,000 ETHs (approximately $190 million) and a pledge worth 70,000 ETHs (approximately $133 million).
This unlocking is significant because it demonstrates the faith and trust that Ethereum users have in the network. Pledging ETHs requires users to stake their tokens and take on the risk of losing them if something goes wrong on the network. This unlocking indicates that users are confident that the hard fork will be successful and that the long-term benefits of the upgrade will outweigh the risks.

Potential Impact on the Ethereum Community

The estimated unlocking of 170,000 ETHs will have a limited impact on the Ethereum community in the short term. However, it is a positive sign that the network is moving in the right direction, and users are willing to pledge their tokens for the long term.
The hard fork is expected to make transactions on Ethereum cheaper and faster, making it a more attractive option for users. This upgrade could lead to the increased adoption of Ethereum as a mainstream platform for decentralized applications (Dapps) and smart contracts.

Conclusion

The estimated unlocking of 170,000 ETHs during Shanghai’s hard fork execution on Ethereum is a positive sign for the network. It indicates that users are confident in the future of Ethereum and are willing to take on the risk of staking their tokens. While the immediate impact of this unlocking is limited, the long-term benefits of the hard fork upgrade could lead to increased adoption of Ethereum in the future.

FAQs

1. What is Ethereum Improvement Proposal (EIP) 1559?

EIP 1559 is a proposal to improve the fee structure of the Ethereum network. It aims to create more predictable and consistent transaction fees for users.

2. What is staking on Ethereum?

Staking on Ethereum refers to pledging ETHs to support the network’s operations. In exchange, users receive rewards in the form of additional ETHs.

3. How will Shanghai’s hard fork impact the price of ETH?

It is difficult to predict how the price of ETH will be impacted by the hard fork in the short term. However, if the upgrade is successful, it could lead to increased adoption of Ethereum and a potential increase in the long-term value of ETH.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/04/12/the-estimated-unlocking-of-170000-eths-during-shanghais-hard-fork-on-ethereum/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.