Defi Educator: After PoS Transition, $22 Billion in ETH 2.0 Funds Won’t Be Liquid Immediately
The Ethereum 2.0 contract is very close to reaching 13 million ether, which is equivalent to $22.6 billion at the current ether exchange rates, as Ethereum’s switch to proof-of-stake (PoS) approaches and the network’s hash rate reaches yet another record high. Decentralised finance (defi) educator also claims that the $22.6 billion worth of ethereum that is still growing won’t be unlocked until another upgrade is put into effect after The Merge. There are 12,785,941 ether locked inside the Ethereum 2.0 contract as of June 4, 2022, according to the etherscan.io website that hosts the contract. As it costs 32 ETH to become a validator, the Ethereum 2.0 contract stores cash for a large number of validators.
The $22.6 billion in Ethereum is currently locked, non-liquid, and may take some time to become so. This means that when the 32 ETH have been deposited, the funds will be kept in a secure location until plans are finalised for the PoS switchover. Recent discussion on the assumption that the 12.7 million ether will be instantaneously liberated and dumped after The Merge was posted by defi instructor Korpi. A delay in the PoS transition may result from these kinds of issues. The most recent network logs show that the Beacon chain for Ethereum underwent a seven-block reorganisation. The Beacon chain is the one that runs concurrently with the Ethereum proof-of-work (PoW) network. According to recent information from Ethereum developer Tim, The Merge is anticipated to launch around the third quarter of 2022.
The obstinate teacher Korpi resumed his Twitter exchange by explaining that Ethereum 2.0 withdrawals will take some time. Only a fixed amount of validators are permitted to leave per epoch, and a validator must leave the current validator set in order to withdraw [ethereum]. There are currently 395k validators (active + pending). If no new ones are set up, it will take 424 days for all of them to leave, which is highly doubtful.