Concerns about the start of the withdrawal procedure. However, they are not, and we explain why.
This is a relevant discussion, especially for those who haven't quite figured out what's going on around Ethereum.
The point is that starting April 12, if all goes well, those who have deposited amounts in staking will be able to start withdrawing both rewards and, if they wish, the entire amount deposited. Such a possibility, though, could result in a significant amount of $ETH on the market.
However, things are much less worrisome than they say.
Ethereum: rewards and rate release, is it really a problem?
The thesis is this: given that those who have bet on Ethereum since the 12th will be able to start withdrawing funds, there will be thousands of coins on the market that will be able to lower the price. This is certainly an issue that needs to be analyzed, but because of the way withdrawals will be handled, it should be viewed in much less disturbing tones than those circulating among laypeople.
In fact, there are two problems that, assuming that many stackers will want to sell, will slow down this possible procedure.
Withdrawals cannot be simultaneous
Withdrawals, and this seems to be the point that makes the procedure very difficult, will not be simultaneous.
As for partial withdrawals, there will be 16 per slot, which means 16 every 12 seconds. A tremendous amount of pressure, which some calculate will be spread over more than 500,000 validators. It doesn't take much to realize that partial withdrawals will also be distributed.
Full withdrawals, on the other hand, if one imagines that someone wants to stop being a validator, would probably be even slower.
The case of Lido and others
A significant portion of Ethereum in stacking passes through Lido Finance. What will the liquid stacking protocol do? It will have a certain delay compared to normal procedures.
Lido talked about mid-May 2023, so even on that side the pressure will be less than many expect. That's assuming, again, that those betting on Ethereum are really interested in withdrawals. There is no certainty that this will be the case.
Is there cause for concern?
Most of the concerns we read around are caused more by sensationalism for the sake of clicks than real concern about the future of the $ETH price.
Too bad, because this is a historic event for Ethereum, and it will be interesting to see what effect it will have on those who until now have been reluctant to bet precisely because of the uncertainty about the timing of withdrawals.
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