Ethereum Staking Withdrawals Can Be DONE In The Near Future

Ethereum will soon provide an ETH staking withdrawal service. (Photo; Doc. Unsplash)

JAKARTA After waiting for the Ethereum (ETH) staking withdrawal feature, the developer finally started a demonstration of ETH withdrawals in his latest testnet called Zejiang. This was announced by the Ethereum Foundation on January 30.

According to one of the Ethereum Foundation members, Parithosh Jayanthi and Barnabas Busa, Zhejiang's testet will premiere on February 1. After that, the developers will launch an upgrade to Shanghai and Capella.

Launching CryptoSlate, once the process is complete, validators can try to make a staking withdrawal in the experiment without using real funds. Validators can convert between credentials, test partial and full withdrawals, and completely exit their validator nodes.

Ethereum currently supports most of the other staking-related features. Users can now stake 32 ETH to operate the validator node. This feature has been available since developers launched the layoff Chain Ethereum in December 2020. Users can also get stake prizes since Merce upgrades in September 2022.

Staking is the process of holding or freezing a number of cryptocurrency coins on certain blockchain networks as a form of support for the network and obtaining rewards in the form of new coins. This is an alternative to mining coins that require huge computing resources. Staking requires active participation from network users to ensure the safety and integrity of the network.

Despite these capabilities, Ethereum does not allow validators to withdraw Staking ETHs. These bounds are introduced to ensure the robustness of the staking network.

The absence of a staking recall is one of the reasons why liquid staking services, such as those offered by Lido and Coinbase, are becoming well-known. Although users of this platform can be prevented from attracting the ETH they are staking, they also issue freely investable "liquid" tokens elsewhere. Some liquid tokens have experienced price movements due to the increased withdrawal of the upcoming staking.

Testnet Zhejiang is the next step to introduce appropriate staking withdrawals on Ethereum. The developer's recent call suggests that the feature will be introduced on the mainnet in March. However, there is still no definite date for the upgrade.