ETH unstaking is ‘not accessible’ on Kraken until the Shanghai upgrade in 6 months
Following the long-awaited Merge update of the Ethereum (ETH) ecosystem, some users have begun to ask when they would be able to unstake their already staked ETH tokens, with cryptocurrency exchange Kraken providing a clear response.
Kraken’s Kraken Pro software, for example, allows users to stake and unstake their bitcoin assets. However, as the crypto exchange’s support notified its users on September 15, ETH unstaking appears to be inaccessible until the announced Shanghai update to the Ethereum network.
Furthermore, Kraken’s support team stated that the Ethereum Foundation expected the Shanghai upgrade to occur “6-12 months after The Merge.” The message also stated that consumers should go to the exchange’s website.
According to Kraken’s help area, the problem is not restricted to the crypto exchange but rather a restriction of the entire Ethereum platform:
“Until the Shanghai update, staked ETH cannot be unstaked or moved on the Ethereum network.” This means that clients should only invest ETH that they intend to keep for a long time. This constraint is not exclusive to Kraken; it applies to the Ethereum network as a whole.”
According to Kraken’s customer service:
“Once withdrawals are permitted following the Shanghai update, you must manually unstake your ETH in order to trade or withdraw it from the exchange.”
Why is unstaking still not possible?
Significantly, the Shanghai upgrade will be given after the Merge because this significant update did not include all of the anticipated functionality, including the ability to withdraw staked ETH. As the Ethereum Foundation described in its section on the Merge:
“In order to streamline and optimize attention on a smooth transition to proof-of-stake, The Merge update does not include certain anticipated functionality such as the ability to withdraw staked ETH.”
Furthermore, according to the website, “the forthcoming Shanghai update will permit staking withdrawals.” “Staked ETH and staking incentives remain locked without the option to withdraw,” the company says, adding that “withdrawals are scheduled for the future Shanghai update.”
According to Finbold, GlobalBlock analyst Marcus Sotiriou believes that the Merge upgrade will eventually offset the dangers and short-term worries since it would let institutional capital to flow into the second-largest decentralized finance (DeFi) currency.