The Ethereum developers have postponed the Shanghai upgrade to April
Press Release

The Ethereum developers have postponed the Shanghai upgrade to April

written by John Murphy | March 4, 2023

The Shanghai upgrade which was supposed to be by the end of March has now been postponed and moved to early April by the core developers of Ethereum.

At the Ethereum developer meeting on 2nd March, the developers decided to delay the Shanghai upgrade. Formerly it was by late March. however, after the meeting, they pushed it forward. Now the Shanghai upgrade will happen someday in the first 2 weeks of April.

In the developers meeting the core developers decided that the main launch of the Shanghai hard fork should be at least two weeks apart from the Georli testnet launch, which is due on 14th March. Georli testnet is like the final dress rehearsal for the hard fork. So they moved the Shanghai upgrade launch from late March to the start of April.

Tim Beiko the core developer and project coordinator at Ethereum said, “For mainnet, we usually want to give people at least two weeks after the announcement,” before adding, “so imagine Goerli happens on the 14th, everything goes well, on the 16th, we agree to move forward with mainnet — I think the earliest that puts us is like the first week of April.”

In a Twitter thread, Bieko did not explicitly but left a hint of the expected date of the Shanghai upgrade

The Shanghai upgrade on Goerli will be the last chance for the Ethereum clients and staking providers to ensure a smooth transition. This upgrade is critical for preparing the network for the upcoming hard fork to roll out on the mainnet.

The Shanghai mainnet upgrade will open up the possibility of gradually withdrawing Ethereum staked on the Beacon Chain.

The Ethereum withdrawals will be vigorous and will depend on the number of validators exiting at that time. Its main purpose is to maintain network stability. The process will go on gradually as there will be a two-stage process with an exit queue and a withdrawal period.

There is around 7.1 million ETH staked on the Beacon chain, with the current value of the assets worth $28 billion. While this represents only 14% of the entire supply.

Furthermore, the upcoming Shanghai upgrade will have positive effects on the Ethereum liquid staking providers. For the time being the ETH is at stake on the Beacon chain. However, with the release of the Shanghai upgrade, Liquid staking platforms like Lido will offer more flexible options for the ETH which might increase its demand and potentially better returns for investors. Thus ultimately more people will choose to stake their ETH on these platforms.