How Will The Ethereum Merge Affect Coinhako Users?

How Will The Ethereum Merge Affect Coinhako Users?

Deposits and withdrawals halted 2 hours prior to The Merge

Deposits and withdrawals for ETH and ERC20 tokens will be halted 2 hours prior to The Merge, and will resume once the network is stable.

As The Merge depends on the speed with which blocks on the Ethereum blockchain are mined, we are unable to provide an exact time for the halting of deposits and withdrawals at the moment. You may refer to a countdown for the approximate time remaining until The Merge occurs here.

Trading services remain unaffected

Trading services will continue to be available during The Merge. Users should note that Ether may experience high price volatility during and shortly after The Merge, and trade with caution.

What is the Merge? 


The Ethereum blockchain is scheduled to undergo a network upgrade on 15 Septemberr, transitioning from a Proof of Work (PoW) to a Proof of Stake (PoS) system.


The Ethereum Merge will unify the existing Ethereum mainnet with the Beacon Chain, the network’s Proof-of-Stake consensus layer. Created by Ethereum developers in Dec 2020, the beacon chain mitigates the need for energy-intensive mining. It will help the Ethereum blockchain transition towards a more scalable, secure, and sustainable system.


This long-awaited upgrade has been in the works since 2020 when Ethereum developers created a new network called the beacon chain.

How does the Merge affect the Ethereum blockchain? 


As Ethereum eases out of its previous Proof-of-Work system, miners will no longer have to solve cryptographic puzzles to verify new blocks.


Instead of solving cryptographic puzzles to verify new blocks, participants of the Ethereum network —now known as Validators —will deposit ether into a pool to win the right to verify the next block.


Frequently Asked Questions 

What happens to the ETH that I currently hold?


There will be no change to your ETH holdings in your Coinhako account. The ticker and balances displayed on the Coinhako Superwallet will be used for Proof-of-Stake Ethereum after the Merge. 


How will Coinhako support ETH post-Merge?


The ETH ticker and balances on Coinhako will be used for Proof-of-Stake Ethereum. Coinhako will evaluate the viability, stability, liquidity, and other factors on any potential new chains to assess the feasibility of supporting any ETH-PoW chains on Coinhako.


Will Coinhako support PoW tokens?

Coinhako will distribute ETH PoW tokens if the following conditions are met:

  1. The emergence of a dominant ETHPoW chain

  2. The value of the ETHPoW token being at least 1% of Ethereum’s pre-merge value

In the event these criteria are met, Coinhako will distribute the PoW tokens to users who

1. Have verified Coinhako accounts

2. Hold an account in good standing with Coinhako 

Users will receive ETHPoW tokens in a ratio of 1 ETHPoW for 1 ETH. No minimum amount of ETH required to receive the forked tokens.

Pending deposits and withdrawals will not be included in the Ethereum balances considered for the distribution of tokens.**

Withdrawals for any distributed ETHPoW tokens will be enabled within 60 days of distribution, provided:

  1. The ETHPoW chain has sufficient hashrate to ensure transaction finality

  2. The ETHPoW chain does not deviate significantly from the pre-merge Ethereum chain in a manner that impairs Coinhako’s ability to safely process withdrawals

  3. The ETHPoW chain has sufficient replay protection enabling Coinhako to safely process withdrawals


Do I have to do anything to prepare for the Merge?


No, you are not required to prepare for the merge. Your funds remain safe.


For more information on the Merge, please refer here