Ethereum Merge, Staking and Trading FAQ

Onchain staking

An overview of eligibility criteria (including geographic restrictions) for Onchain staking can be found here.

Ethereum 2.0 or Eth2, was an upgrade to the Ethereum network. The Ethereum Merge was migrating Ethereum from the previous Proof-of-Work network to a new Proof-of-Stake blockchain, Eth2 aims to increase scalability and reduce energy consumption.

As a Proof-of-Stake blockchain, the Eth2 Beacon Chain is built and secured by the network's validators. To participate as a Beacon Chain validator, you must stake ETH by sending it to a deposit contract on the Ethereum network. When you stake through Kraken, we will credit your account with staked ETH and the applicable staking rewards consistent with our Terms and the rules of the Ethereum network.

Note that due to the the Shapella upgrade ETH2 no longer exists. Any ETH2 on your account was converted to ETH.

Review frequently asked questions within the sections below:

General

Where can I see updates that Kraken is making as a result of The Merge?

What service disruptions are expected during The Merge? (Trading, funding, etc)

Do I need to do anything to have my ETH transitioned to the Proof Of Stake Chain?

What happens to my staked ETH post-merge? Will this automatically be credited to my account or is there any technical work that needs to be conducted first?

What will happen in the event of an airdrop or a fork and what impact would these events have on margin positions?

2022 Notice regarding the Ethereum Merge

Ethereum underwent an upgrade, known as ‘The Merge,’ which involves a transition from proof-of-work to proof-of-stake, within Q3/Q4 2022. During this transition, new forked tokens may be created.

The Merge was a major milestone for the Ethereum community and Kraken supported this event in ways that help our clients and Kraken's mission.

The ETH ticker represents the token on the updated PoS Ethereum chain post-merge. Kraken subjected any newly forked token(s) to the same strict review process that we follow before making any token available for trading. It is not guaranteed that any such tokens will be made available for trading, as per our policy.

Updates:

•
The Merge is now complete, deposits and withdrawals for ETH and all Ethereum-based (ERC20) tokens have now resumed following the Merge completion.
•
ETHW funding and trading is now available. The ETHW token has been distributed to eligible clients. Please contact our support team if you wish to opt out of the token distribution. Review our blog for more information.
•
It is possible that the ETHW token may not emerge and that its value could settle to zero. ETHW’s price is highly volatile, please take the time to research the risks involved in trading this token.

Additional resources:

•
Support article: Review our Ethereum Merge, Staking and Trading FAQ
•
Blog: What you should know about the Ethereum Merge on Kraken
•
Kraken Learn: Learn more about Ethereum and The Merge

These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell, or hold any digital asset or to engage in any specific trading strategy. Some crypto products and markets are unregulated, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your crypto assets and you should seek independent advice on your taxation position.

Article last updated 16 September 2022 17:00 UTC

Staking

Can I un-stake ETH?

What are the current rewards for staking ETH, what about after The Merge?

What is the Fee for Staking?

Where can I see my ETH staking rewards?

Do I need to be holding ETH in order to stake?

How do I stake ETH?

How long do I have to wait after staking to begin earning rewards?

Do staked ETH rewards compound using the Grow Rewards option?

Trading

Can I trade staked ETH?

Can I use staked ETH as collateral for margin trading?

What is the meaning of the ETH, ETH2.S and ETH2 ticker symbols on Kraken?

ETH	The ETH ticker on Kraken represents “regular” ETH: ETH on the Ethereum blockchain that has neither been staked nor earned as staking rewards. It can be staked, deposited, traded and withdrawn.
ETH2.S	The ETH2.S ticker on Kraken represents ETH that has been staked to support the Eth2 network upgrade.
ETH2	Prior to the Shapella upgrade, the ETH2 ticker on Kraken represented ETH that was earned as staking rewards through Eth2 staking. ETH2 could not be staked, deposited, traded or withdrawn. As of the successful completion of the Shapella upgrade ETH2, has been deprecated. Any ETH2 on your account will automatically be converted to ETH.

Derivatives Trading

Will the ETH index for both fixed and perpetual futures continue as the PoS chain?

Will fixed maturity futures be settled to the PoS chain, PoW chain or a combination of both?

Will fixed maturity futures be settled on The Merge date or at the usual settlement date?

How will you handle the ETH perpetual futures contracts? Will you settle it and start a new ETHPoS contract?

Will there be any changes to margin requirements for the currently-listed ETH contracts?

If the ETH PoW airdrop is supported on spot, will this include my Futures balances?

If you have any additional questions, our support specialists are available to assist you.