The Ethereum network’s long-anticipated transition to proof-of-stake—the Merge—is set to redefine the blockchain’s future. As Ethereum shifts from energy-intensive proof-of-work (PoW) to a more sustainable proof-of-stake (PoS) consensus mechanism, users must stay informed about how this upgrade impacts their digital assets and trading activities on platforms like OKX.
This comprehensive guide breaks down the key phases of the Merge, outlines potential scenarios, and explains how OKX is preparing to ensure a smooth transition for all users.
Understanding the Two-Phase Merge Process
The Merge is not a single event but a coordinated upgrade occurring in two critical stages: Bellatrix and Paris.
Bellatrix: Preparing the Beacon Chain
Scheduled around September 6, 2022 (UTC), the Bellatrix upgrade targets Ethereum’s consensus layer—the Beacon Chain. This phase ensures the Beacon Chain becomes "Merge aware," meaning it’s technically ready to integrate with Ethereum’s current execution layer. While users won’t see immediate changes on the mainnet, this step is essential for aligning the network ahead of the final transition.
Paris: The Final Transition to Proof-of-Stake
Expected around September 15, 2022 (UTC), the Paris upgrade marks the execution layer’s shift from PoW to PoS. The trigger for this change is when Ethereum reaches a Terminal Total Difficulty (TTD) of 58,750,000,000,000,000,000,000. At that point:
- The Ethereum proof-of-work chain will permanently shut down.
- The execution layer will merge into the Beacon Chain.
- Validators will fully take over block production through staking.
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How OKX Is Supporting Users During the Merge
To maintain platform stability and protect user assets, OKX will implement temporary adjustments during both upgrade windows.
Temporary Suspension of Deposits and Withdrawals
ETH and ERC-20 token deposits and withdrawals will be paused during:
- Bellatrix upgrade (~September 6, 2022 UTC)
- Paris upgrade (~September 15, 2022 UTC)
Exact timing will be announced in advance. These measures help prevent transaction failures or loss of funds during network synchronization.
Possible Outcomes: Two Scenarios for The Merge
While Ethereum Foundation developers expect a clean transition, hard forks can sometimes lead to chain splits. OKX has prepared for both outcomes.
Scenario A: No New Token Created
If no fork occurs:
- ETH on the PoS chain will continue as standard “ETH.”
- OKX will resume deposits, withdrawals, and cross-chain bridge services once network stability is confirmed.
Scenario B: A Proof-of-Work Fork Emerges
In the event of a contentious fork:
- Tokens on the new PoW chain will be treated as forked tokens.
- Your ETH balance at the time of the snapshot will determine eligibility for a 1:1 airdrop of these forked tokens.
- Forked tokens must pass OKX’s standard listing review before trading becomes available.
Important: If you hold outstanding ETH loans (including negative equity in multi-currency margin mode), repayment may be required in forked tokens under Scenario B. We recommend repaying ETH liabilities in advance to avoid complications.
Impact on Trading Services
OKX has designed its systems to minimize disruption across all trading products.
Spot Trading
Unaffected. ETH and ERC-20 spot markets will remain fully operational.
Margin Trading
- Cross and isolated margin trading for ETH pairs will continue.
- However, ETH margin borrowing and VIP borrowing services will be suspended temporarily.
- Interest rates may be adjusted prior to suspension based on market volatility.
Futures & Perpetual Swaps
ETHUSDT and ETHUSD perpetual swaps and futures contracts will operate normally. However, due to potential price swings:
- Funding rates may be adjusted.
- Price limits could be modified.
- Margin tier structures might change in multi-currency and portfolio margin modes.
- Index price components and mark prices may be updated.
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Options Trading
ETHUSD options trading remains unaffected by the Merge.
Grow Services: Staking, Savings & DeFi
Your participation in yield-generating products will largely continue uninterrupted.
Savings, Staking, Dual Investment & Smart Gain
These services remain active. Your staked ETH will be included in any pre-fork snapshot. Given increased market volatility during forks, consider adjusting your exposure accordingly.
Loan Services
ETH-backed loans are unaffected. However:
- ETH used as collateral will be part of the snapshot.
- Any ETH-denominated debt will require repayment—potentially in forked tokens if a split occurs.
ETH 2.0 Staking
- Subscriptions to ETH 2.0 staking will pause on September 6 and September 15, 2022.
- BETH rewards will continue to be distributed normally.
- Whether staked ETH qualifies for forked token claims depends on how the PoW chain handles ETH2.0 smart contracts. A dedicated announcement will clarify this.
DeFi Mining
- Project subscriptions remain active.
- On-chain staking and redemption functions will be suspended on upgrade days.
- Profit distribution may experience short delays.
Fiat & Conversion Services
Both fiat-to-crypto purchases and ETH conversion services will operate without interruption during the Merge. You can continue buying ETH with fiat or swapping between assets seamlessly.
Frequently Asked Questions (FAQ)
Q: Will I lose my ETH during The Merge?
A: No. Your ETH holdings are safe. The Merge is a protocol upgrade, not a token swap. As long as you control your private keys or use a trusted platform like OKX, your funds remain secure.
Q: Do I need to take any action before The Merge?
A: It’s advisable to deposit ETH to OKX before the upgrade windows if you plan to trade or withdraw afterward. Also, consider repaying any ETH loans early to avoid repayment obligations in forked tokens.
Q: Will I receive free tokens if a hard fork happens?
A: If a PoW fork occurs and OKX supports it, eligible users will receive forked tokens via a 1:1 airdrop based on their snapshot balance. Trading availability depends on post-fork evaluation.
Q: Can I still trade ETH during the Merge?
A: Yes. Spot, futures, perpetuals, and options trading will continue. Only deposits and withdrawals are temporarily paused around upgrade times.
Q: What happens to my staked ETH or BETH tokens?
A: Your staked assets remain secure. BETH rewards are unaffected. Post-Merge treatment of staked ETH on a potential PoW chain will be clarified in a follow-up announcement.
Q: How will OKX handle extreme price movements?
A: OKX may adjust margin requirements, funding rates, and price indices to manage risk. Users are encouraged to reduce leverage and monitor positions closely.
Final Thoughts
The Merge represents a pivotal moment in Ethereum’s evolution—ushering in greater scalability, sustainability, and security. While technical transitions can introduce uncertainty, OKX is committed to ensuring asset safety, service continuity, and transparent communication throughout the process.
Stay updated through official OKX channels and prepare proactively by managing open positions, reviewing loan balances, and understanding potential fork implications.
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