Changes to ETH and ERC-20 tokens during the Ethereum Merge
On Thursday September 15 at around 2:30 pm (AEST), Ethereum will undergo its highly anticipated transition from Proof-of-Work to Proof-of-Stake.
Known as the Merge, the switch will cause a hard fork in the Ethereum chain and may result in temporary outages for both ETH and ERC-20 tokens.
Here’s what you need to know about your CoinJar and the Merge.
Withdrawals, deposits and trading
Withdrawals for all ETH and ERC-20 tokens will be paused for a brief period either side of the Merge event. We will let you know when withdrawals have resumed on our Status page.
You will still be able to make deposits, although they may be delayed. Trading will be unaffected.
When exactly will the Merge happen?
The Merge is scheduled to occur when the total network difficulty reaches a certain level. The best estimate for when this will happen is September 15 at 2:35 pm (AEST), but it could commence anywhere within a three hour window around that time.
Do I have to do anything?
No. All your ETH and ERC-20 tokens will continue on in the same amounts with the same addresses after the Merge.
Be vigilant: anyone telling you that you have to take action to upgrade your tokens or move them to the new chain is trying to scam you.
Will I receive tokens on the ETHPOW chain?
After the Merge, there is a chance that the old Ethereum Proof-of-Work chain will continue operating, meaning two sets of Ethereum tokens will now be in existence – ETH and ETHPOW.
CoinJar is fully committed to the Merge and will not be supporting ETHPOW at this time. Any ETH and ERC-20 tokens sent to your CoinJar account on the ETHPOW chain will be lost permanently.
It is highly unlikely that ERC-20 tokens and stablecoins on the ETHPOW chain will have any value after the Merge, so always make sure you are buying or trading tokens on the new ETH mainnet.
For more about what the Merge means, check out our most recent Offchain newsletter. If you have any questions or concerns about the Merge and how it might affect you, get in touch with Support.
CoinJar’s digital currency exchange services are operated in Australia by CoinJar Australia Pty Ltd ACN 648 570 807, a registered digital currency exchange provider with AUSTRAC; and in the United Kingdom by CoinJar UK Limited (company number 8905988), registered by the Financial Conduct Authority as a Cryptoasset Exchange Provider and Custodian Wallet Provider in the United Kingdom under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767). Like all investments, cryptoassets carry risk. Due to the potential volatility of the cryptoasset markets, the value of your investments may fall significantly and lead to total loss. Cryptoassets are complex and are unregulated in the UK, and you are unable to access the UK Financial Service Compensation Scheme or the UK Financial Ombudsman Service. We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. Capital Gains Tax may be payable on profits.