$ETH: Bitcoin Developer and Educator Jimmy Song Says ‘ETH PoS’ Is ‘A Roach Motel’

On Saturday (26 November 2022), prominent Bitcoin developer, educator and entrepreneur Jimmy Song expressed how he feels about Ethereum 2.0’s Proof-of-Stake (PoS) consensus mechanism.

Around 7:00 a.m. UTC on September 15, Ethereum’s Merge upgrade was completed, which meant that the Ethereum network moved to PoS consensus from the much more energy-hungry Proof-of-Work (PoW) consensus.

Ethereum co-creator Vitalik Buterin called this successful upgrade “a big moment for the Ethereum ecosystem”:

Two problems with staking in Ethereum 2.0 are that your state is locked (unlike in some other PoS networks, such as Cardano) and that currently withdrawals are not allowed.

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On the day the Merge was completed, one Cardano fan pointed out that Kraken has recently told its users that $ETH unstaking will not be available until Ethereum has its Shanghai protocol upgrade (which was expected to take place in 2023). Cardano and Ethereum co-founder Charles Hoskinson then sent out a tweet that mocked Ethereum’s PoS model by subtly noting that Cardano’s PoS design and implementation does not suffer from this problem:

Then, on16 September 2022, after $ADA stake pool operator pointed out that no date has been announced for Ethereum’s Shanghai upgrade, the IOG CEO compared the situation that $ETH stakers find themselves in to being stuck in “Hotel California”.

As you may know, “Hotel California” is “the title track from the Eagles’ album of the same name and was released as a single in February 1977.” This is the last part of the song:

Last thing I remember, I was
Running for the door
I had to find the passage back
To the place I was before
‘Relax, ‘ said the night man
‘We are programmed to receive
You can check out any time you like
But you can never leave’

Before the Merge, here is what an FAQ on Ethereum Foundation’s website was saying about withdrawals:

Staked ETH, staking rewards to date, and newly issued ETH immediately after The Merge will still be locked on the Beacon Chain without the ability to withdraw.

Withdrawals are planned for the Shanghai upgrade, the next major upgrade following The Merge. This means that newly issued ETH, though accumulating on the Beacon Chain, will remain locked and illiquid for at least 6-12 months following The Merge.

This means that the Shanghai upgrade was estimated to take place sometime in 2023. However, after the Merge was completed, Ethereum Foundation decided it was better not to make any promises about the expected date of the Shanghai upgrade:

As of 26 November 2022, here is what the withdrawals section of the FAQ on the Ethereum Foundation’s website says:

Earlier today, Jimmy Song decided to share his thoughts on this current lack of stake withdrawal capability in Ethereum 2.0:

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Featured Image via Pixabay

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