The Merge refers to the Ethereum network’s change of consensus mechanism from Proof-of-Work (POW) to Proof-of-Stake (POS). Check out our latest blog post.
Coinbase Prime will temporarily pause withdrawals and transfers for Ethereum and ERC tokens during the Merge (on or around 9/14). ETH and ERC token transactions will be available as soon as possible after ensuring the transition has been successfully reflected by our systems. We expect this could last several hours; however, it could also extend depending on network conditions. The best way to stay on top of the current status is via Twitter and the Prime status page.
Due to Ethereum (ETH) network limitations, staked ETH (ETH2) won’t become liquid (available for withdrawal) at the time of or directly after the Merge. Staked ETH will become liquid after the Shanghai upgrade, which is estimated to occur in 6-12 months. Visit the ETH official website for the latest updates.
The Merge will result in changes to rewards and how ETH and ETH2 are displayed within Coinbase Prime. Expand each section below to learn more.
After the merge, ETH staking will generate additional rewards, including a new type of rewards known as staking transaction fee rewards. Note: Validator rewards will remain unchanged and won’t be liquid post-merge.
Staking transaction fee rewards are liquid. Clients with staked ETH will automatically begin earning staking transaction fee rewards post Merge. These transaction rewards are held separately in an ETH wallet and not in an ETH2 wallet. See the section below for details on how to view these rewards. These rewards will be invoiced at the same fee as staked ETH validator rewards. Like validator rewards fees, they aren’t taken directly from your rewards balance. Validator and transaction rewards will appear as separate line items on your invoice.
Coinbase Prime will have separate asset pages for ETH and ETH2.
On the ETH asset page:
If you’ve staked ETH, the top banner will display the staked ETH amount, the locked (staking validator) rewards, and the unlocked (staking transactions) rewards. You’ll be directed to the ETH2 asset page to access your staked ETH wallet, including the locked rewards.
From the Overview tab, under Vault balance, you’ll see vault (cold) wallets, including the new staking transaction rewards (cold) wallet. Your staking transaction rewards from all staked ETH wallets are deposited into this wallet. Under Trading Balance, you’ll see the unstaked ETH trading (hot) wallet. The assets in both the hot and cold wallets are liquid.
From the Staking tab, under Staking rewards, you’ll see the new staking transaction rewards wallet. Under Eligible wallets, you’ll see the stakable wallets. All wallets found on this page are also located on the Overview tab.
On the ETH2 asset page (you’ll only see this if you’ve staked ETH):
The top banner will display the staked ETH amount, the locked (staking validator) rewards, and the unlocked (staking transactions) rewards. You’ll be directed to the ETH asset page to access the staking transaction rewards wallet.
From the Overview tab, under Vault Balance, you’ll see the staked ETH wallet(s). The pending staking validator rewards are combined with the respective staked ETH wallet(s). These assets are illiquid. The Staking tab will also display the staked wallets.