Ethereum Completes The Merge: Proof of Stake Goes Live
On September 15, 2022, at precisely 06:42 UTC, Ethereum completed its most anticipated and technically ambitious upgrade to date: The Merge. After years of planning, testing, and community debate, Ethereum officially transitioned from Proof of Work (PoW) to Proof of Stake (PoS) consensus — marking a historic moment in blockchain history.
The Merge not only redefines Ethereum’s technical infrastructure but also represents a profound shift in how public blockchains approach security, sustainability, and decentralization.
What Happened During The Merge
The Merge refers to the fusion of Ethereum’s PoW execution layer (the mainnet) with the Beacon Chain — Ethereum’s PoS consensus layer that has been running since December 2020.
At block height 15537393, Ethereum reached its Terminal Total Difficulty (TTD) of 58,750,000,000T. From that moment on, block production ceased using miners and began using validators who stake ETH.
The transition occurred without any major disruptions, bugs, or forks, confirming the immense coordination and technical precision behind the scenes.
What Changes Now That Ethereum Is on PoS
With Proof of Stake live on Ethereum, the network undergoes several critical changes:
1. Energy Efficiency Skyrockets
Ethereum’s energy consumption has dropped by over 99.95%, as PoW mining is no longer required. Ethereum is now one of the most energy-efficient blockchains, a shift celebrated by ESG investors and environmental advocates alike.
2. Mining Is Gone
GPU and ASIC miners are no longer part of Ethereum’s consensus mechanism. This ends an era of Ethereum mining that supported thousands of individuals and companies globally. Miners must now repurpose hardware for other PoW chains — or exit the space entirely.
3. Validators Secure the Network
Ethereum is now secured by validators who stake a minimum of 32 ETH. These validators are randomly selected to propose and attest blocks. In return, they receive ETH rewards for honest behavior — and risk slashing for malicious actions.
4. ETH Issuance Decreases
Post-Merge, Ethereum’s issuance rate has dropped by approximately 90%. Combined with EIP-1559’s burn mechanism, this makes ETH deflationary under certain conditions, reinforcing its long-term value proposition as “ultrasound money.”
5. Finality Improves
Under PoS, blocks are finalized more quickly and securely through the Casper FFG protocol. This reduces the chance of reorgs and increases confidence in transaction settlement — a win for dApps and DeFi protocols.
What Doesn’t Change After The Merge
Despite the monumental shift in consensus, some elements of Ethereum remain unchanged for now:
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Gas fees are not immediately lower.
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Transaction throughput (TPS) remains around 15–30.
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dApps and smart contracts function exactly as before — no migrations are needed.
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Staked ETH remains locked until the Shanghai upgrade, expected in early 2023.
The Merge lays the foundation for future scalability improvements like sharding and data availability layers, but those are part of Ethereum’s next development phases.
The Market Reaction
The successful completion of the Merge was met with both excitement and cautious optimism in the markets.
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ETH briefly rallied above $1,600 in the days before the Merge.
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Upon completion, the market responded with a sell-the-news reaction, and ETH retraced slightly — a common dynamic around highly anticipated events.
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ETH PoW fork tokens (like ETHW) launched, but their prices and legitimacy remain highly uncertain.
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Staking tokens like Lido (stETH) and Rocket Pool (rETH) remained stable, reflecting confidence in the staking infrastructure.
Despite short-term volatility, many long-term investors view the Merge as bullish for Ethereum’s fundamentals, particularly given its reduced energy footprint and deflationary mechanics.
What It Means for Crypto as a Whole
The Merge is not just a win for Ethereum — it’s a proof point for public blockchain development as a whole.
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It demonstrates that large, decentralized systems can evolve without compromising security.
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It offers a blueprint for how other networks might migrate away from energy-intensive mining.
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It boosts Ethereum’s appeal among institutions and regulators, many of whom cited PoW’s energy usage as a barrier to adoption.
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It sets the stage for Ethereum to become the global financial settlement layer of Web3.
The crypto space, often plagued by uncertainty and skepticism, now has a clear success story of engineering ambition realized.
The Next Steps: Ethereum’s Roadmap Continues
Ethereum’s journey doesn’t stop with the Merge. According to co-founder Vitalik Buterin, Ethereum is now just “55% complete.” The roadmap ahead includes:
The Surge
The introduction of sharding, designed to improve scalability by splitting the network into smaller chains that process transactions in parallel.
The Verge
The implementation of Verkle Trees, allowing for more efficient and compact blockchain data structures, enhancing node performance.
The Purge
A reduction in historical data requirements for nodes, improving decentralization and lowering barriers to participation.
The Splurge
Miscellaneous improvements and optimization efforts to refine Ethereum over time.
These upgrades, combined with Layer 2 solutions like Optimism, Arbitrum, and zk-rollups, will push Ethereum’s capacity to tens of thousands of transactions per second.
Risks and Considerations Post-Merge
While the Merge is a success, challenges remain:
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Centralization concerns: Over 50% of staked ETH is controlled by a few providers (e.g., Lido, Coinbase).
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Slashing risks for validators who behave incorrectly.
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Regulatory scrutiny: Some jurisdictions may view staking as a form of security offering.
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Fork confusion: ETHW and other PoW forks may create short-term noise, scams, or user errors.
Ethereum must now balance innovation with resilience as it continues to scale.
Conclusion: Ethereum Enters a New Era
The successful completion of The Merge in September 2022 marks a defining moment in crypto history. Ethereum, once seen as an energy-hungry network, now runs on one of the most sustainable consensus models available.
Proof of Stake is live. The mining era is over. A new chapter begins — one that emphasizes scalability, inclusivity, and environmental responsibility.
For developers, investors, and believers in the decentralized future, The Merge is more than a milestone — it’s a message: Ethereum is here to stay, and it’s evolving.