How to Prepare for Ethereum Staking Withdrawal
Every year, Ethereum reaches a significant milestone in its development. Take the last few years as an example. The network went through the London hard fork in 2021. This led to the creation of five new Ethereum Improvement Proposals, one of which is EIP-1559. Then, The Merge took place a year ago. The upgrade switched Ethereum’s way of deciding “proof of work” to “proof of stake.”
The community has been getting ready for the Shanghai hard fork, which will happen in 2023. The same thing will happen over the next few months, making it possible to withdraw stakes. This week, an Ethereum test net processed its first Ethereum Staking withdrawal, bringing the network closer to the upgrade.
Also Read: https://cryptoweir.com/how-to-use-etherscan-to-read-crypto-transactions-explained/
How to prepare for the staking withdrawal upgrade?
The staking withdrawals page on Ethereum was just updated. With the new update, users can choose to have their rewards sent straight to a given account. Along with that, they can also take out their staked ETH at any time.
Users who gave a withdrawal address when they first set up their staked deposit don’t have to do much. The official website pointed out that most people who bet didn’t give that address when they made their first deposit. So, these users will have to update their login information.
According to the Zhejiang Testnet Launchpad, once this is done, stakers will have to “signal” their intention to stop staking by “signing and broadcasting a voluntary exit message to the network” using their validator keys and validator client. By doing this, they will be able to “exit betting” and regain their remaining balance.
As far as Ethereum stakers who haven’t yet put down their tokens, the website’s guide said,
“By default, new stakers who want automatic reward payments and withdrawals should give an Ethereum withdrawal address they control when using the Staking Deposit CLI tool to generate their validator keys.”
This is not needed when the deposit is made. But if you do this, you won’t have to change your keys to get to your money in the future.
The Staking Launchpad will guide users on the onboarding process. Like explained in a recent article, only a handful of steps need to be followed to do so.
