The highly anticipated Ethereum Merge is approaching its final stages, prompting major exchanges to adjust their services. FTX has announced a temporary suspension of Ethereum (ETH) deposits and withdrawals on several networks, including Arbitrum, Solana, and Binance Smart Chain (BSC), to ensure a smooth transition. These measures are precautionary and are expected to be lifted once the Merge is complete and the network stabilizes.
This article details FTX's service adjustments, the timeline of the Ethereum Merge, and what users can expect during this historic upgrade.
Understanding the Ethereum Merge Process
The Ethereum Merge is a major upgrade that transitions the Ethereum blockchain from a Proof-of-Work (PoW) consensus mechanism to a more energy-efficient Proof-of-Stake (PoS) system. This transition occurs in two key phases.
The first phase, known as the Bellatrix upgrade, targeted the consensus layer. It successfully activated on the Beacon Chain at Epoch 144896, which occurred on September 6, 2022. This step prepared the network for the main event.
The second and final phase is the Paris upgrade, which focuses on the execution layer. The trigger for this upgrade is based on a specific Total Terminal Difficulty (TTD) value of 58750000000000000000000. Based on network projections at the time, FTX estimated this trigger would be hit on September 15, 2022, at approximately 2:03 PM UTC.
FTX's Service Suspension Schedule
To mitigate risks associated with the network transition, FTX planned a temporary halt to ETH-related transactions on specific networks. The suspensions were scheduled around each upgrade event.
- For the Bellatrix Upgrade: Native ETH and ERC-20 token deposits and withdrawals were scheduled to be paused approximately 30 minutes before the upgrade.
For the Paris Upgrade: Similar precautions were planned for the native ETH and ERC-20 network. Additionally, wrapped ETH on other networks faced a staggered suspension:
- Arbitrum One ETH: Suspended on September 7, 2022, at 00:00 UTC.
- Solana (Wormhole) ETH & BSC ETH: Scheduled for suspension on September 15, 2022, at 00:00 UTC.
The exchange confirmed that all other services, including spot trading, leverage trading, and futures trading for native ETH and ERC-20 tokens, would continue to operate normally during this period. Services were slated to resume once the post-merge network was deemed stable.
Handling Potential ETH Proof-of-Work Forks
A significant aspect of the Merge was the potential for a chain split, resulting in a new Proof-of-Work (PoW) version of Ethereum. FTX outlined its plan for this possibility.
The exchange stated that the ETH ticker would be reserved for the new Proof-of-Stake (PoS) chain. If a viable PoW fork occurred, FTX committed to crediting users' accounts with the forked PoW ETH tokens based on their ETH balance at the time of a pre-merge snapshot.
Users who had borrowed ETH would be responsible for repaying the forked PoW ETH equivalent. FTX also reserved the right to evaluate whether to list any forked tokens for trading and to modify its handling policy at any time. 👉 Explore more strategies for navigating network upgrades
Frequently Asked Questions
What is the Ethereum Merge?
The Ethereum Merge was the process of merging the original Ethereum Mainnet with the Beacon Chain proof-of-stake system. This transition eliminated the need for energy-intensive mining, instead using staked ETH to secure the network.
Did my ETH tokens change after the Merge?
No, user-held ETH tokens remained unchanged. The upgrade was a change in the network's consensus mechanism, not a token swap or redenomination. Your existing ETH automatically became the currency of the new PoS chain.
Could I trade on FTX during the service suspension?
Yes, all spot, leverage, and futures trading for ETH and ERC-20 tokens continued without interruption. Only deposits and withdrawals for native ETH and wrapped ETH on specific networks were temporarily paused.
What was FTX's policy on a potential Ethereum fork?
FTX planned to support the PoS chain as the official ETH. If a significant PoW fork occurred, they intended to distribute the forked tokens to users based on their ETH holdings at a snapshot block height before the Merge.
How long were the suspensions expected to last?
The suspensions were temporary and precautionary. Services were scheduled to be restored once the FTX team confirmed the merged network was operating stably and securely, which was expected to be within hours of the upgrade's completion.
Was my crypto safe on FTX during the Merge?
FTX implemented these service pauses specifically to protect user assets during a period of potential network instability and uncertainty. The measures were designed to prevent erroneous transactions or loss due to chain splits.