The Ethereum Merge is quickly approaching and we wanted to let you know how Paxos will be handling it.
What is the Ethereum Merge?
The Ethereum Merge is a network upgrade that represents the joining of the existing execution layer of Ethereum (the Mainnet we use today) with its new proof-of-stake consensus layer, known as the Beacon Chain. Changing Ethereum’s consensus mechanism from proof-of-work to proof-of-stake will help the network become more secure and scalable, eliminating the need for energy-intensive mining and securing the network using staked ETH.
Paxos plans to follow the greater Ethereum community by supporting the main proof-of-stake (POS) Ethereum chain post-merge. We believe this chain will set the stage for further scalability upgrades and faster throughput. Learn more.
How will this impact you?
Please note that no action is required on your part to facilitate the upgrade to the proof-of-stake network. Your customers’ balances will not be impacted and all assets are safe with Paxos. The corresponding amount of ETH and ERC-20 assets will be reflected on the new chain.
We do not expect any interruption to trading during this period. Your customers will continue to be able to trade all Paxos-supported crypto assets on the Paxos platform including BTC, LTC and BCH, as well as Ethereum and ERC-20 assets such as ETH, LINK, MATIC, AAVE, UNI, USDP, BUSD and PAXG.
How long is the Ethereum Merge?
The merge itself will occur over a single block (~12 seconds).
When is the merge taking place?
The merge is anticipated to take place between September 14 and 15, 2022. This is an approximation, dependent on the hashrate of previous blocks.
Will Paxos have a maintenance window during this time?
Paxos does not expect any interruption or pause to trading. Paxos will pause on-chain Ethereum network transfers approximately 1 hour prior to the merge and will resume transfer activity once we’ve determined that the new network is stable. Ensuring network stability may require a longer maintenance window due to external issues related to the upgrade. On-chain transfers for Bitcoin, Bitcoin Cash and Litecoin are not expected to experience any interruption.
We will communicate all updates before, during and after the merge through the Paxos Status page. Please subscribe to receive real-time updates.
For Transfers Users:
During the merge, Paxos will pause on-chain transfer processing on the Ethereum network: ETH, LINK, MATIC, AAVE, UNI, USDP, BUSD and PAXG. Specifically:
- Create Crypto Withdrawal - Withdrawals can be created, but they will remain in the PENDING status until we resume blockchain processing.
- Create Deposit Address - Customers can continue to generate deposit addresses.
- Detection/Crediting of Deposit - Until Paxos resumes processing, deposits will not be recognized. At that point, we will process all deposits that have been made during the merge.
On-chain transfer processing for Bitcoin, Bitcoin Cash and Litecoin is not expected to experience any interruption.
What does Paxos recommend I do to prepare for the merge?
Paxos recommends to pause ETH & ERC-20 deposit address generation and ETH & ERC-20 withdrawal initiation on your application. We believe that pausing these features will reduce price risk for your end users that would arise from transfers remaining in a pending state during an extended maintenance window.
You will be able to monitor or receive updates on Paxos’ on-chain transfer processing availability through the Paxos Status page.
This is just a recommendation and not a requirement. We would be happy to discuss other options to address any concerns you may have.
What will happen with forked assets?
Paxos will not support any forked assets for Paxos-issued assets such as USDP, BUSD and PAXG.
At the time of the Ethereum Merge, Paxos will take an accounting snapshot of all customer balances. In the future, Paxos may evaluate whether to support and list forked tokens under Paxos' rigorous asset listing processes. Paxos does not guarantee any future listing of these tokens. If Paxos supports forked tokens in the future, they will be granted depending on the accounting snapshot completed prior to the merge.
How do I get more information about the Ethereum Merge?
We expect minimal downtime without disruptions, but in the event that there are any issues that impact your customers’ ability to trade, please contact support.