Over $2 billion in Ethereum rewards will be liquid within five days of Shapella’s launch

After Shapella, “partial withdrawals” will be available for over 1,100,000 ETH ($2 billion) in accumulated validator rewards.

According to on-chain estimates, more than 1.1 million ether, or $2 billion, in accrued validator rewards will be available for a claim following today’s Shapella upgrade for Ethereum.

Regular depositors, independent validators, and users of staking service providers will be able to access rewards accrued over the past two years. 6% of the total 18 million ETH presently staked on the network will be distributed as “partial withdrawals” for these rewards.

Every 12 seconds, partial withdrawals will be sent automatically to up to 16 validators per Ethereum block. However, not all rewards will be instantaneously claimed. Only validators with a “0x01” withdrawal credential will be included in the automatic procedure for receiving the aforementioned rewards.

According to a report by crypto analytics firm Glassnode, only 44% have registered to claim these partial withdrawals. That means the remaining validators won’t get their share of the incentives until they make a credential update once the upgrade has been implemented.

In addition, the impact of partial withdrawals is distinct from that of complete withdrawals. Regarding full withdrawals or exits after Shapella, Ethereum will enable a daily maximum of 1,800 validators to entirely unstake, enabling up to 57,600 ETH ($109 million) in daily full withdrawals. In the first five days, this equates to a maximum of 288,000 ETH. This limit of 1,800 is enforced due to an attrition rate designed to prevent excessive un-staking, as only eight validators per epoch may request to leave the network and terminate their stake.

In the first five days following Shapella, around 1.4 million ETH ($2.6 billion) will be withdrawable in whole or in part. However, this number represents the theoretical maximal amount of liquid ether that could be extracted, and the actual quantity of ether extracted and potentially sold will be determined at the time.

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