The Ethereum Merge stands as one of the most significant and eagerly anticipated upgrades in the history of the blockchain ecosystem. While its long-term impact will be widespread, it's essential for some participants to take preparatory steps in the short term. This article aims to clarify widespread misunderstandings and provide accurate information regarding The Merge.
What Was The Ethereum Merge?
The Merge represented the unification of Ethereum's existing execution layer—the Mainnet we have used for years—with the new Proof-of-Stake (PoS) consensus layer, the Beacon Chain. This transition eliminated the need for energy-intensive mining, instead using staked ETH to secure the network. It was a major milestone toward achieving Ethereum’s core vision: enhanced scalability, security, and sustainability.
User and Holder Guidance
No action was required for users to protect their funds during The Merge.
It bears repeating: if you were a holder of ETH or any other digital asset on Ethereum, and you were not operating a node, you did not need to take any special steps with your funds or wallet before The Merge.
Despite the shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS), the entire history of Ethereum remained intact. Any funds held in your wallet before The Merge remained fully accessible afterward. No upgrade procedure was necessary.
That said, as the event approached, users were advised to remain extremely vigilant against scams attempting to exploit the transition. There was no need to send ETH anywhere to “upgrade to ETH2”—a token that did not exist.
Common Misconceptions About The Merge
Misconception 1: Running a Node Requires Staking 32 ETH
False. Anyone is free to sync their own self-verifying copy of the Ethereum blockchain—i.e., run a node. No ETH is required, either before or after The Merge—or ever.
There are two types of nodes on Ethereum: those that can propose blocks and those that cannot.
Block-proposing nodes represent a small subset of all nodes. Under PoW, these were miners; under PoS, they are validators. These participants commit economic resources (like GPU hash power in PoW or staked ETH in PoS) for the chance to propose blocks and earn rewards.
The majority of nodes do not propose blocks. However, they play a critical role in network security by listening for new blocks, validating them against consensus rules, and holding block proposers accountable. These nodes require only consumer-grade hardware with sufficient storage and an internet connection.
Running a non-block-producing node is strongly encouraged for those able to do so. It enhances personal security, privacy, and censorship resistance while supporting the overall health and decentralization of the network.
Misconception 2: The Merge Reduced Gas Fees
False. The Merge was a change in consensus mechanism, not a network expansion. It did not reduce gas fees.
Gas fees are a product of network demand relative to network capacity. While The Merge transitioned Ethereum to PoS, it did not significantly alter parameters that directly affect capacity or throughput.
Misconception 3: Transactions Became Significantly Faster After The Merge
False. While there were minor changes, Layer 1 transaction speed remained largely consistent.
Transaction speed can be measured in terms of inclusion time and finalization time. Both changed slightly, but not in a way most users would notice.
Under PoW, blocks were produced approximately every 13.3 seconds. Under PoS, a slot occurs every 12 seconds, each offering a validator the chance to propose a block. Most slots contain a block, though not all (if a validator is offline). The net increase in block production frequency was about 10%—a fairly negligible change.
However, PoS introduced the concept of finality. Under PoW, the probability of reversing a transaction diminishes with each subsequent block but never reaches zero. Under PoS, validators vote during epochs (intervals of 6.4 minutes containing 32 slots). Once an epoch is finalized, reverting it would require destroying at least one-third of the total staked ETH—making it economically infeasible.
While finality offers stronger security guarantees, it does not translate meaningfully faster transaction speeds for most users.
Misconception 4: Staked ETH Could Be Withdrawn Immediately After The Merge
False. The Merge did not enable staking withdrawals. That functionality was scheduled for the subsequent Shanghai upgrade.
Staked ETH, staking rewards earned up to that point, and newly issued ETH after The Merge remained locked on the Beacon Chain and non-transferable until withdrawals were enabled.
Misconception 5: Validators Did Not Receive Any Liquid ETH Rewards Until Withdrawals Were Enabled
False. Fee tips and MEV (Maximal Extractable Value) were credited to validators’ mainnet accounts and were immediately available.
This may seem contradictory since withdrawals were not enabled until Shanghai. However, rewards from transaction fees and MEV were accessible immediately because they were paid in ETH on the execution layer (mainnet), which was separate from the consensus layer.
Protocol issuance—new ETH created as rewards for consensus participation—was still locked on the Beacon Chain until Shanghai. But execution layer fees were available for use right away.
Misconception 6: Stakers Exited Immediately Once Withdrawals Were Enabled
False. For security reasons, the rate of validator exits is limited by the protocol.
Even after withdrawals were enabled, full validator exits were subject to a rate limit—only six validators could exit per epoch (approximately 1,350 per day). This mechanism prevents large, sudden outflows of staked ETH, maintains network stability, and protects against certain attacks.
Validators were incentivized to withdraw any balance over 32 ETH, as excess stake didn’t contribute to higher rewards. Some chose to exit entirely, while others restaked rewards to compound earnings.
The staking APR is dynamic—if too many validators exit, the APR increases for those who remain, attracting new stakers and balancing the market.
Misconception 7: Staking APR Tripled After The Merge
False. More accurate estimates projected about a 50% increase in staking APR post-Merge, not 200%.
The increase did not come from higher protocol issuance (which actually decreased by nearly 90%), but from the reallocation of transaction fees, which began going to validators instead of miners.
The exact amount validators earned from fees depended on network activity. At the time of The Merge, about 10% of all gas fees were being paid as tips to miners. Extrapolating from that, the estimated staking APR increased to around 7%—roughly 50% higher than pre-Merge levels.
Misconception 8: The Merge Caused Network Downtime
False. The upgrade was designed for a seamless transition with zero downtime.
The shift was triggered by Terminal Total Difficulty (TTD), a cumulative measure of the total proof-of-work done to build the chain. Once TTD was reached, the very next block was produced using PoS. The process was engineered to avoid any interruption in block production or network operation.
Frequently Asked Questions
What was the purpose of The Ethereum Merge?
The Merge transitioned Ethereum from energy-intensive mining to energy-efficient staking. It significantly reduced Ethereum’s energy consumption and set the stage for future scaling improvements like sharding.
Did users need to migrate their ETH to a new chain?
No. There was no “ETH2” token, and no migration was required. ETH held before The Merge remained valid and accessible in the same wallets afterward.
How did The Merge affect Ethereum’s security?
It enhanced security by switching to Proof-of-Stake. Attackers would need to acquire and control a very large amount of ETH to attempt an attack, making it economically prohibitive.
Could stakers lose their funds due to The Merge?
Only if they failed to update their validator software or violated protocol rules (e.g., slashing conditions). Regular users and stakers who followed instructions were not at risk.
What was the role of the Beacon Chain in The Merge?
The Beacon Chain was running in parallel to Mainnet as a separate PoS blockchain. The Merge fused the two, making the Beacon Chain the consensus engine for Mainnet.
Where can I learn more about Ethereum’s ongoing developments?
For those interested in understanding current and future upgrades, 👉 explore more educational resources here.
The Ethereum Merge was a landmark technological achievement that fundamentally improved the network’s sustainability and security. By dispelling these common myths, we hope users and enthusiasts gained a clearer, more accurate understanding of this critical upgrade.