With The Merge expected to happen in September, how will your nodes be effected?
The Ethereum Merge from PoW to PoS affects us in different ways:
Our staking customers are expected to receive significantly higher rewards due to transaction fee rewards earned on their validators (previously sent to miners) and an additional 10-20% reward increase from MEV-Boost
New testnet options and possible migration needs for our infrastructure customers, as only Goerli and Sepolia testnets will be officially supported long-term. And the deprecated OpenEthereum (former Parity) Execution Client will stop working on any network as soon as it is merged.
Operationally, our dedicated ETH Merge engineering team is combining Execution and Consensus layer clients and going through numerous client updates for the various testnet trial runs, so that service is never interrupted for our customers during the whole process.
Wen Merge? Switching Ethereum from Proof-of-Work to Proof-of-Stake
The last test network Goerli will be merged in the next few days, expected between August 6 – 12, 2022 as per the official announcement. If there are no major issues discovered, the AllCoreDev call scheduled for August 18th will likely agree on a finalized timing for the Mainnet merge. Currently, it is penciled in for around September 19th. We can expect an official blog post from the Ethereum Foundation on Ethereum.org, which generally has a number of great resources about The Merge.
One great example is their easy to understand section about common Misconceptions about The Merge. We’ll continue to keep you updated in this newsletter!
When will I receive my different types of rewards as a validator?
Immediately after The Merge, two additional reward streams from transaction fees and MEV rewards will go to Proof-of-Stake validators instead of the Proof-of-Work miners. The transaction fees (and any potential MEV rewards) will be transferred automatically and immediately to your Eth1 withdrawal address that you specified when setting up your validator with us. Each individual validator node is currently expecting to create a block every ~60 days on average. Customers who use the same withdrawal address for multiple validators will see deposits of transaction fees and MEV rewards more often.
Your validator rewards emitted from the protocol, the rewards that your validator has been receiving pre-merge, will continue to accrue on your validator. Withdrawals for these will not be enabled at The Merge, instead the Ethereum developers plan to enable these withdrawals in the next fork (~Q1/Q2-2023).
Vitalik’s talk about the future Ethereum roadmap
Two weeks ago at the Ethereum Community Conference in Paris, Ethereum founder Vitalik Buterin shared his “Thoughts about the longer term future of the Ethereum protocol”. After the Ethereum merge, there will be many more upgrades to the network: he calls them playfully the surge, the verge, the purge, and a splurge. There are summaries and key points online, but I recommend actually watching the 45 min video on Youtube to enjoy the first-hand impression with plenty of laughs .
New Product & Protocol Releases
- Optimism Nodes – The Layer 2 Optimistic Rollup – Available by Request
- Native Access to Goerli testnet now live on Ubiquity API
Blockdaemon Ethereum Ecosystem Lead
“The future is on Ethereum—the most vibrant, mature, and diverse decentralized ecosystem.”