Ethereum Merge Explained: What Investors Should Know About the Shift to Proof-of-Stake

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Ethereum Merge Explained: What Investors Should Know About the Shift to Proof-of-Stake
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You asked, skessler answered: Here's our FAQ on the impending Ethereum Merge: Let us know if there's anything we missed 👇

With so many variables and unknowns, it is impossible to predict what will happen to Ethereum’s token price as a result of the Merge.

But not everyone is sure that the Merge will boost the price of ETH. The upgrade may already be priced-in by the market. There is also a risk that the Merge will run into hiccups, or that PoS will prove less secure than PoW in the long run.It is already possible to “stake” 32 ether and earn rewards for validating Ethereum’s PoS Beacon Chain. Staked ether will accrue network rewards, but it will be impossible to withdraw until an update expected around six to 12 months after the Merge.

Those who stake via centralized staking services or pools will need to keep an eye out for announcements on how withdrawals will be handled.If you hold ether today, you won’t need to claim new “PoS ETH” or “ETH2” tokens. Your balance will remain exactly the same after the Merge, and you’ll be able to resume using the network as if nothing has changed.

If you hold ETH before the Merge, you may automatically receive a balance of tokens on these new PoW forks. The process of claiming these tokens will differ depending on the chain. If you hold ETH on a centralized exchange like Coinbase, the exchange will need to list forked tokens in order for you to claim your share .

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

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