The Ethereum Shanghai upgrade, implemented on April 12, 2023, marked the final step in Ethereum's transition to Proof-of-Stake (PoS) by enabling the withdrawal of staked ETH and rewards locked since the Beacon Chain's 2020 launch. Officially termed Shapella (combining "Shanghai" for the execution layer and "Capella" for the consensus layer), this upgrade allowed validators to execute partial withdrawals (rewards only) or full withdrawals (entire stake + rewards), subject to a queue system to prevent network overload 135. Beyond unlocking ~18 million staked ETH (worth ~$31 billion), the upgrade included technical enhancements like EIP-3651 and EIP-3855 to reduce gas fees for developers and improve transaction efficiency 168. While initially sparking concerns about sell pressure from unlocked ETH, the upgrade ultimately boosted staking participation by eliminating indefinite lockups, strengthening Ethereum's security and scalability
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