Kraken notifies its users that “ETH unstaking” will be unavailable until the Shanghai upgrade
The Cryptocurrency exchange “Kraken” recently released a statement announcing that the option to unstake ETH will be unavailable on their exchange.
Option to unstake ETH post Shanghai upgrade
After a long wait finally the Ethereum Merge was successfully executed which resulted in an overall upgrade of the entire Ethereum ecosystem. After the update a majority of the users have begun asking various queries whether they can unstake their already staked tokens on the Ethereum network. The Cryptocurrency exchange “Kraken” has come up with a straight answer regarding this query.
The support network of Kraken announced that the option to unstake the ETH on the network will be unavailable to users on the network. The option will become accessible after the Shanghai upgrade which is supposed to occur post Merge is successfully executed on the network. The Kraken app network ie. Kraken Pro app enables customers to unstake their already staked ETH however it appears that this particular option will be currently unavailable on the network.
The Kraken support network further notified its users that the Shanghai upgrade is supposed to be executed post 6–12 months after the Merge as stated by the Ethereum foundation. The support network further clarified that the issue of locking in of Ethereum stake is not specific to Kraken instead it is a limitation of the Ethereum network and not specific to any particular exchange.
Because staked ETH cannot be unstaked on the network before the planned Shanghai upgrade it is recommended that only users who plan to accumulate ETH on a long term basis should become a part of the current staking process. The limitations on staking and transferring are specific to the Ethereum network and therefore users should plan accordingly before they stake their assets
Reasons behind why users can’t unstake their ETH
The upcoming Shanghai upgrade is supposed to be released after the Merge. The recent Sep 15 “Merge” didn’t come loaded with all specific features such as features to withdraw the staked ETH because the current upgrade was more focused on simplifying and maximizing the focus to a successful transaction to the “Proof of Stake” consensus mechanism.
However the website further states that the upcoming Shanghai upgrade will allow users to unstake their ETH but the rewards of the staking feature will only be available after an upgrade post the Shanghai upgrade.
