Notice of XPOS, XWallet and Merchant Portal services regarding the upcoming Ethereum Merge
Dear Pundians,
The Ethereum Merge is estimated to happen anytime soon between Sep 14 to 15, 2022. For better security of the token transactions, Pundi X will pause all deposits and withdrawals on the Ethereum network from Sep 12, 2022 at 00:00 GMT+8 until the merge is completed and the network is stable.
The affected services include:
- Deposits and withdrawals of all ERC20 digital assets in XWallet
- ETH On-chain Payment and Crypto Sales
- Deposit and withdrawal requests of USDT and DAI ERC-20 on the merchant portal
Please note that:
- Transactions among XWallet, XPOS and XPASS cards using the Cashier module are not affected.
- The service suspension does NOT include BNB, BTC, and USDT BEP20 on-chain payment and on-chain crypto sales transactions.
- Deposits and withdrawals of BEP20 stable coins in the Merchant Portal will not be affected
- We will resume the services after the Merge is completed and the networks are stable. We will notify users in a further announcement.
What is the Ethereum Merge?
The Ethereum Merge is set to move the Ethereum blockchain network away from an energy-intensive proof-of-work (PoW) model to a more environmentally-friendly proof-of-stake (PoS) mechanism, meaning merging the Mainet with its new proof-of-stake consensus layer, the Beacon Chain. Proof of stake means transactions are verified on the blockchain by different nodes. Crypto owners can then stake their coins to create validator nodes on the network and get a chance to verify transactions. Once they verify transactions, they get back rewards in crypto for their contribution — in this case, Ethereum. Compared to the previous proof-of-work consensus, the network’s energy usage will drop by more than 99%.
When is the Merge?
The first step of the Merge is the Bellatrix update, which was successfully activated on September 6, 2022. The next and final step is the Paris update. In this update, the PoW chain will be deactivated when the total terminal difficulty (TTD) value of 58750000000000000000000 is reached. There is no confirmed termination timing, but it is estimated to happen between September 14 to 15, 2022. You can find the LIVE estimates for the transition can be found at bordel.wtf and 797.io/themerge.
How to know whether the merge is completed?
After the TTD is reached and the first block is created on the Beacon Chain, the merge is completed.
How are tokens affected after the Merge?
Considering Ethereum’s size and influence, the fate of the Merge is likely to have a ripple effect on the broader crypto industry.
There are arguments that the Merge could put other coins at risk, especially if they run on Ethereum. Some believe the Merge may lead to a fork that might have unexpected and unfavorable outcomes, especially considering that this is the first time an entire network is transitioning from one consensus model to another.
Even networks are already making good work of the Ethereum Virtual Machine, or EVM. The EVM enables developers to create applications and smart contracts inside the Ethereum network. Some even liken EVM to the beating heart of Ethereum.
One thing for sure is that the Merge will increase the scalability of Ethereum blockchain which accommodates more users to transact.
How will the Merge affect Pundi X merchants and users?
The Merge is designed to be smooth and seamless; however, to minimize the risks of failed transactions during the Merge, Pundi X will pause the ERC20 token withdrawals and deposit on the Ethereum network from Sep 12, 2022 at 00:00 GMT+8 until the merge is completed and the network is stable.
The transactions on other chains (e.g.: On-chain payment and crypto sales of BTC, BNB and USDT on BNB Smart Chain) will not be affected during the Merge period.
If you have any questions or concerns, please contact support@pundix.com.
Thank you.
Sincerely,
Pundi X Team
Reference:
Ethereum.org
https://ethereum.org/en/upgrades/merge/#what-is-the-merge
https://blog.ethereum.org/2022/08/24/mainnet-merge-announcement
