Ethereum Validators Face Delayed Withdrawals – Understanding the Cause Behind Long Waiting Times
On April 19th, according to Nansen data, after the upgrade in Shanghai, Ethereum validators who request withdrawals will have to wait for more than 17 days to retrieve their pledge
On April 19th, according to Nansen data, after the upgrade in Shanghai, Ethereum validators who request withdrawals will have to wait for more than 17 days to retrieve their pledged ETH. Last week, Unstacking took approximately 14 days, but as more and more exit requests from validators on the blockchain flooded in, the exit waiting time has been extended. （CoinDesk）
Nansen: Ethereum Unstaying withdrawal request needs to wait for more than 17 days
Are you an Ethereum validator who wants to withdraw your pledged ETH? Brace yourself for an extended waiting time. According to recent data from Nansen, validators who withdraw their ETH after the upgrade in Shanghai may have to wait for more than 17 days to receive their funds. Last week, it took approximately 14 days for unstacking, but with a massive influx of exit requests from validators, the waiting time has increased significantly.
In this article, we’ll delve deep into the cause behind this delayed withdrawal and share some insights to help you understand what’s happening in the Ethereum ecosystem.
The Story Behind Ethereum Validators’ Withdrawals
If you’re familiar with Ethereum staking, you know that validators serve as the backbone of the network. They verify transactions and propose blocks while earning rewards for their efforts. Validators who stake ETH also need to have it locked up in a smart contract, which they can’t access until they exit the network.
If validators want to leave the network, they need to initiate an exit request, which happens in a queue-based system. The faster the request is submitted, the quicker the validator can retrieve their funds. But, validators who exit early at random intervals are penalized and forfeit a part of their rewards.
Validators currently have to wait for 18,000 Ethereum blocks, equivalent to approximately six days, to exit the network. But with a sudden surge in the number of validators exiting the ecosystem, the queue has become congested, leading to longer waiting times.
The Cause Behind the Delays
The delays in validators’ withdrawals can be attributed to the existing infrastructure and the increasing number of validators leaving the network. The current queue-based system prioritizes requests based on the timestamp of the application. As a result, validators lose their spot in the queue if they submit their request later than others, leading to a longer waiting time to retrieve their pledged ETH.
Moreover, the recent increase in ETH’s price has resulted in a considerable number of validators exiting the network to cash out their rewards. The sudden surge in applications has led to a backlog of requests, subsequently causing long waiting times.
Potential Solutions to Alleviate the Congestion
While the current situation may be frustrating for validators, it’s temporary. Ethereum developers are working towards finding a long-term solution that will better handle validator withdrawals. In the meantime, developers have proposed certain measures to ease the congestion and reduce waiting times.
One potential solution is to use Ethereum Improvement Proposal (EIP) 2498, which proposes changing the queue-based system to a priority-based system. The priority-based system highlights the penalty a validator would face for exiting earlier than others, ensuring the most significant rewards are saved until later. This approach would reduce the penalty for early validators and, in turn, reduce the number of requests in the queue.
Another proposed solution is using a “cancellation window” that allows validators to cancel their exit requests if the waiting time exceeds a certain threshold. This approach would help in releasing spots in the queue and reduce congestion.
Conclusion
The sudden surge in ETH’s price and the number of validators exiting the network has led to a congestion in the withdrawal queue. Validators who are requesting ETH withdrawals are currently experiencing delayed payment. The degraded performance of the withdrawal queue-based system has increased waiting times to retrieve pledged ETH.
Ethereum developers are working towards a long-term solution to manage validator withdrawals. Until then, prioritizing exit requests based on the penalty imposed offers a potential solution. Aiming to reduce the penalty for validators who exit early, a priority-based system could be an effective strategy to reduce congestion and mitigate waiting times.
FAQs
Q. How long do validators have to wait to retrieve their pledged ETH?
A. After the upgrade in Shanghai, validators who request withdrawals can wait for more than 17 days to receive their pledged ETH.
Q. Can validators exit before the six-day period?
A. Validators can exit the network early, but they face a penalty in forgoing a portion of their rewards.
Q. What measures have been proposed to alleviate congestion in the withdrawal queue?
A. A priority-based system and a “cancellation window” are two potential solutions that are proposed to reduce congestion and waiting times.
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