The Merge Ethereum upgrade and what it means to CoinLoan users
In brief: Everything is under our control, and no action is required from users. Below you can find more details about the Merge, related activities, and possible forks handling.
What is the Merge?
The Merge Ethereum upgrade is expected to happen on September 13–15 (the date may change). The new proof-of-stake consensus layer (the Beacon Chain) is joining the existing execution layer of the Ethereum blockchain (the mainnet). The Merge is a milestone that has been in the works for six years. The energy consumption of the Ethereum blockchain is expected to reduce by 99.95% with the upgrade from the proof-of-work (PoW) to the proof-of-stake (PoS) consensus mechanism.
Relative energy consumption per blockchain transaction. Source: Ethereum.org
What measures CoinLoan will take
On The Merge day, we will temporarily suspend all deposits and withdrawals via the Ethereum blockchain on our platform until we are certain the upgrade is successfully completed.
Your assets will be completely safe during The Merge. No action is required from your end.
See the countdown to the update here.
Crypto: CLT, WBTC, ETH, LINK, MKR, and PAXG
Stablecoins: USDC, BUSD, USDT, DAI, TUSD, and USDP (PAX)
You won’t be able to transfer the assets mentioned above during The Merge. Please make sure there is enough time to process your transfers via Ethereum before the stated time. After The Merge is completed, we will resume all suspended actions and inform you about this on our social media.
Are any other actions on the platform suspended too?
No. Any other actions except for deposits and withdrawals via Ethereum are available. Our internal transactions remain unaffected as well.
How The Merge can go: two possible scenarios
1. ⠀ New tokens are not coming out of The Merge.
What we do: when we are sure The Merge is successfully completed, we resume all previously suspended actions. From then, you can deposit and withdraw assets via the Ethereum blockchain as you did before.
2. ⠀ One or more new tokens are coming out of The Merge.
This is the case if one or more proof-of-work (PoW) forks happen.
What we do: CoinLoan would support forked tokens and make them available to our users on the platform, subject to certain conditions:
- CoinLoan will treat tokens generated on the Ethereum upgraded PoS chain as ETH and tokens generated on the Ethereum PoW chain as forked tokens.
- We will credit the forked tokens directly into your CoinLoan Wallet based on the snapshots of your ETH balances. Note: Don’t withdraw your assets before The Merge, as snapshot time can vary.
- New tokens will follow the same security and technical procedures as all the new assets we list on the platform. If all requirements are met, we will make them available to our users for the relevant scope of operations as soon as possible.
Any additional info on the subject will be included in our next announcement regarding The Merge. Stay tuned for the upcoming updates!
The information provided by CoinLoan (“we,” “us,” or “our”) in this text is for general informational purposes only. All investment and financial opinions expressed by CoinLoan in this text are from the personal research and open information sources and are intended as educational material. All outlined information is provided in good faith. However, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information in this text.
Originally published at https://coinloan.io on September 12, 2022.