KuCoin will support the upcoming Ethereum merge
01/09/2022 21:21:51
Dear KuCoin Users,
Ethereum’s Proof-of-Work (PoW) chain will migrate to the Proof-of-Stake (PoS) chain upon hitting the Terminal Total Difficulty (TTD) value of 58750000000000000000000. KuCoin will support Ethereum Proof-of-Work (POW) merge to Proof-of-Stake (POS).
The consensus layer’s upgrade (Bellatrix) is scheduled for epoch 144,896 on the Beacon Chain at 11:34:47 on September 6, 2022 (UTC).
The execution layer's upgrade (Paris) is expected to occur between September 10-20, 2022. The exact date at which TTD is reached depends on the proof-of-work hash rate. The current estimation lies at the ETH mainnet block height of 15,540,293, or approximately at 2022-09-14 15:51:02 (UTC).
As a new token might be created during a hard fork, KuCoin has taken the following steps to maintain the safety of user funds.
The arrangements are as follows:
1. ETH Deposits & Withdrawals
KuCoin will suspend the deposit and withdrawal for ETH and ERC-20 tokens at approximately:
- 11:00 on September 6, 2022 (UTC) for the Bellatrix consensus layer upgrade
- 15:51 on September 14, 2022 (UTC) for the Paris execution layer upgrade
The actual time to suspend the deposit and withdrawal will be announced separately.
2. Regarding the Merge
The two likely scenarios to occur with the Ethereum (ETH) Merge are:
Scenario A:
No new token is created. KuCoin will then reopen deposits and withdrawals for ETH and ERC-20 tokens as soon as possible. A further announcement will be posted.
Scenario B:
The chain splits into two competing chains, creating a new token. The “ETH” ticker will be used for the Ethereum PoS chain. KuCoin will airdrop the new forked token to the users based on the snapshot of ETH balances before the Paris execution layer upgrade and will support withdrawals for the forked token. The details related to this airdrop will be announced separately as soon as possible.
3. ETH and ERC-20 Tokens Spot & Margin Trading
Spot trading: Spot trading for ETH and ERC-20 tokens will not be affected. KuCoin reminds you to take sufficient risk measures as price volatility is often high during contentious hard forks.
Margin trading:
1. Trading for ETH Cross and Isolated Margin pairs will not be affected.
2. KuCoin will suspend lending and borrowing services of ETH before the Merge.
If you have any outstanding ETH loans at the time of the snapshot, you will have to return the forked tokens, regardless of being listed on Kucoin. Therefore, it is recommended that you repay your ETH loans in advance！
To protect the fairness of trading and users' interest, if you fail to repay the forked tokens in time, KuCoin reserves the right to settle the outstanding balance regarding the forked tokens under your margin account with the latest market price and return the forked tokens.
3. If there is any relevant update, it will be notified separately in the form of an announcement.
4. ETH Leveraged Tokens – ETH3L, ETH3S
The trading of ETH3L/USDT and ETH3S/USDT trading pairs will not be affected.
During the merge period, KuCoin reserves the right to suspend the trade, subscription, and redemption of ETH3L and ETH3S.
KuCoin reminds you to take sufficient risk measures as price volatility is often high during contentious hard forks.
5. ETH Futures Trading
Both USDT-margined and COIN-margined ETH contracts will not be influenced. To protect users’ rights and interests, KuCoin will make an extra risk control over ETH contracts during the upgrade. Involved adjustments include but are not limited to: max leverage, position size limit, maintenance margin, and price index constituents. For any changes on the adjustments, related follow-ups to this subject will be announced separately as soon as possible. If a new token is created after the hard fork, users who hold ETH in their Futures Accounts before the hard fork will receive an airdrop of the new token. If there are any changes to the underlying assets of the contracts, KuCoin will provide further information in the following announcement. KuCoin reminds you to take sufficient risk measures as price volatility is often high during contentious hard forks.
6. KuCoin Convert
ETH Convert will not be affected.
7. KuCoin Pool
After the Merge, KuCoin Pool will delist the ETH mining service. Users of the ETH Pool can transfer their hash rate to the ETC Pool.
8. KuCoin Trading Bot
ETH trading on Trading Bot will not be affected. In the case of a new token being created, KuCoin will snapshot the trading bot account and airdrop the new tokens to the Spot account (Main account),
9. KuCoin Earn
KuCoin Earn will not be affected. However, in the case of a new token being created, KuCoin will snapshot the earn account and airdrop the new tokens to the spot trading account.
For Convert ETH2, your ETH2 staking rewards will be distributed regularly. However, in the event of Scenario B, ETH2 holders may or may not receive potential airdrops from the forked chain, depending on how the forked chain handles ETH 2.0 depositing contracts. The details related to this airdrop will be announced separately as soon as possible if needed.
Please Note:
1. Tokens in pending deposit or withdrawal at the time of the snapshots will not count towards your balance. KuCoin will take the actual assets in users’ accounts as the snapshot for distribution.
2. The snapshot records have included balances in Trading/Margin/Trading Bot/Futures/Financial Account. Therefore, if the chain splits into two competing chains and a new token is created, the new token will be distributed to qualified Spot accounts of users.
3. The Paris execution layer upgrade is estimated to take place at the ETH mainnet block height of 15,540,293. The estimated time is for users’ reference only; the actual time for the merge is based on the announcement from Ethereum.
For further information, please refer to the following:
Thank you for your support!
The KuCoin Team
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