Ethereum Developers Set Date for “Shanghai Hard Fork”

When to unlock the Ether staked on the sidechain of the Ethereum network has been a topic of discussion lately. The sidechain used during the most important update in Ethereum history was tested with Ethers locked to this network. By investing their assets in this network, users incentivize the transition of the Ethereum network from a proof-of-work to a proof-of-stake model, while earning an interest-like income on locked Ether holdings. In the current situation, a statement was made that removed the anxiety in the market and it was announced that users will be able to receive their key ETH assets and rewards in March.

One of the most important platforms that allows locking the desired amount of assets on the Ethereum network has emerged as Lido Finance. However, it was not possible to withdraw the locked Ethereum assets until the next update.

On the other hand, the negative developments in recent months have also worried Ethereum investors. Concerns have also been raised for stETH linked to staked Ethereum assets used on the Lido Finance platform since the collapse of the Terra ecosystem. In addition to individual investors, companies also had large amounts of stETH savings. Celsius, one of these companies, was in trouble after the collapse of the Terra ecosystem, and Celsius had a significant investment in stETH on its Lido Finance platform. He was also a key stETH investor at 3AC, another crypto company that declared bankruptcy.

In addition to all these negative developments, the US Fed’s start to increase interest rates triggered investors to exit income-generating systems in the crypto space. However, despite all the negativities, the existence of stETH managed to survive. With the decision taken yesterday, the determination of the date when the investors will get their ETH assets and the rewards they earned back has emerged as a positive development for the market.

The developers also announced a series of updates for the Ethereum Virtual Machine (EVM), where smart contracts are run on the Ethereum network. These updates are expected to go hand in hand with the Shanghai hard fork. However, if a potential problem is detected, EVM updates may be postponed to late 2023 so that there is no problem in resolving staked ETHs.

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