Ethereum Merge FAQs
The most common questions about Ethereum’s shift to Proof-of-Stake and how it will impact MoonPay.
By Geoffrey Lyons
The Merge is upon us.
In just a matter of days, the Ethereum network will change engines mid-flight, transitioning from a Proof-of-Work consensus mechanism to the more energy-efficient Proof-of-Stake.
The move is widely considered to be the most momentous event in blockchain’s short history, not least because Ethereum dominates roughly 80% of the NFT market and, along with its scaling solutions, accounts for roughly 60% of the total value locked across all of DeFi.
So what is the Merge and how will it impact MoonPay?
This article answers some of the most frequently asked questions about the Ethereum Merge and how it will affect MoonPay transactions.
What is the Merge?
The Ethereum Merge is Ethereum’s migration from Proof-of-Work to Proof-of-Stake. The Proof-of-Stake “Beacon Chain”, which was launched in 2020, will now become the authoritative source for the Ethereum mainnet.
To learn more about the Merge, see our article The Ethereum Merge (ETH 2.0) explained
To learn more about consensus mechanisms, see our article Proof of Work vs Proof of Stake
How will the Merge impact Ethereum transactions?
The Merge should have little impact on ETH transactions since everything has already been rehearsed on test networks. Due to network congestion, however, gas fees could potentially rise and make it more expensive to trade. This could delay transactions, including ETH purchases made through MoonPay.
To learn more about gas fees, see our article What are Ethereum gas fees?
When will the Merge take place?
Wen Merge? Technically the activation process has already begun, but the whole thing will complete once Ethereum reaches a Terminal Total Difficulty (TTD) of 58750000000000000000000.
In plain English, there is no hard deadline for when this will occur, but most expect it to take place between September 13-15th.
Can I buy ETH and ERC20 assets on MoonPay during the Merge?
Yes. The ability to buy ETH and ERC20 assets will not be affected by the Merge, although we do expect there to be some minor delays in delivering these assets to customers.
Can I sell ETH and ERC20 assets on MoonPay during the Merge?
Yes. The ability to sell will be unaffected, but customers should still expect delays when selling crypto via MoonPay due to delays on the blockchain itself.
Which MoonPay-supported cryptocurrencies will be affected?
Along with ETH and ERC20 assets, expect delayed withdrawals for supported assets on Sorare (ETH), Immutable (USDC, IMX, GODS, ETH), Polygon (SAND, USDC, ETH), and zkSync (USDT, ETH, DAI, USDC).
Will the Merge reduce fees?
In short, no. The Merge itself will have very little impact on fees as they are a result of supply and demand on the blockchain.
Will the Merge improve scalability on Ethereum?
The current upgrade to Proof-of-Stake will not add any more capacity. The next step in Ethereum’s evolution, however, is sharding, which will exponentially increase capacity by splitting the blockchain into multiple parallel chains.
Also, Layer 2 scaling solutions like Optimism and Abitrum are increasing capacity and reducing fees by bundling multiple transactions into a single Ethereum transaction.
To learn more about sharding, see our article section What are the next steps for Ethereum?
Do ETH holders need to do anything with their Ethereum to prepare for the Merge?
No. ETH holders do not need to do anything and can rest assured that their stored or staked ETH will remain post-merge. ETH will also maintain the same ticker symbol.
Buy Ethereum via MoonPay
You can still participate in the Ethereum blockchain while these changes occur.
MoonPay makes it easy to buy Ethereum (ETH) and ERC20 tokens like USDT and USDC with a credit or debit card, bank transfer, Apple Pay, Google Pay, and more.