The Shanghai and Capella upgrades, known as Shapella, will allow cancellation of staking for the first time since ETH staking began in December 2020. With the Ethereum Merge, the network switched from public proof From the move (PoW) to proof of stake (PoS) in September 2022, but users can still withdraw their staked ETH.
Coinbase Allows Withdrawal Of Staked ETH
The platform has stated that users who wish to cancel their ETH deposit can do so on Coinbase once the upgrade is complete. But it seems that no-staking requests will be subject to a waiting period determined by the Ethereum protocol.
“Customers may need to be patient: we anticipate the Ethereum protocol to take weeks to months to process no-staking requests immediately after the upgrade.” – Coinbase
Deposit requests are not open to all Coinbase customers at the same time and are forwarded to the Ethereum protocol and queued as received. Because the Shapella upgrade allows for bet cancellations and bet rewards, customers are generally taxable for rewards earned before and after the upgrade.
For US Coinbase clients holding collateralized ETH (ETH2) or cbETH, Coinbase will issue all required 1099 MISCs, including taxable activities related to such assets, under general tax regulations. This is the year users have been waiting for the Ethereum upgrade and this is the first time that stakers have been able to unlock coins, so high demand for staking on the network was expected immediately after the upgrade.
On the other hand, Lido Finance, the leading liquid staking solution, has decided to postpone its unstaking schedule until mid-May. The reason given was to give more time to verify the chain to ensure user safety.
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