The Ethereum network’s long-anticipated transition — known as The Merge — marked a pivotal moment in blockchain history. As Ethereum shifted from energy-intensive proof-of-work (PoW) to a more sustainable proof-of-stake (PoS) consensus mechanism, exchanges and users alike had to prepare for potential disruptions. This update outlines how OKX supported users during this critical upgrade, ensuring asset security, service continuity, and clear guidance through possible fork scenarios.
Understanding The Merge: Key Phases and Timeline
The Merge was not a single event but a two-stage process designed to seamlessly integrate Ethereum’s original execution layer with the Beacon Chain, which had been running in parallel since December 2020.
Bellatrix Upgrade – The First Step
The Bellatrix upgrade occurred when the Beacon Chain reached epoch 144,896 — around September 6, 2022 (UTC). This was a consensus-layer upgrade that made the Beacon Chain “Merge aware,” preparing it to receive the Ethereum Mainnet’s execution data.
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Paris Upgrade – The Final Transition
The second and decisive phase, Paris, took place when Ethereum’s proof-of-work chain reached a Terminal Total Difficulty (TTD) of 58,750,000,000,000,000,000,000, estimated around September 15, 2022 (UTC). At this point:
- The Ethereum execution layer officially merged with the PoS Beacon Chain.
- Proof-of-work mining ceased.
- Validators began producing blocks through staking.
This completed The Merge, marking Ethereum’s full transition into a proof-of-stake network.
Core Keywords
- Ethereum Merge
- ETH staking
- Proof-of-stake transition
- Ethereum fork risk
- ETH deposit withdrawal
- Blockchain upgrade
- Crypto trading safety
- ETH price volatility
These keywords reflect user search intent around technical changes, asset safety, and trading continuity during one of the most significant upgrades in crypto history.
User Protection Measures During The Merge
To safeguard user assets and maintain platform stability, OKX implemented several proactive measures before and during both upgrade phases.
Temporary Suspension of Deposits and Withdrawals
For security reasons, OKX temporarily suspended ETH and ERC-20 token deposits and withdrawals during the following periods:
- Around September 6, 2022, during the Bellatrix upgrade
- Around September 15, 2022, during the Paris upgrade
This precaution ensured that transactions would not be lost or misrouted during network instability. Services resumed only after thorough verification of network stability.
Possible Outcomes: Two Scenarios for Users
Given the nature of hard forks, two primary outcomes were anticipated.
Scenario A: No New Token Created
If no competing PoW chain emerged post-Merge:
- OKX resumed all ETH and ERC-20 services once network stability was confirmed.
- Users experienced a smooth transition with no changes to their holdings.
Scenario B: A Proof-of-Work Fork Emerges
In the event of a hard fork creating a new PoW-based Ethereum chain:
- Tokens on the PoS chain remained labeled as ETH.
- Tokens on the PoW chain were treated as forked tokens.
- Forked tokens were distributed at a 1:1 ratio based on users’ ETH balances at the time of the snapshot.
- These tokens underwent OKX’s standard listing review process before becoming available for trading.
Users were notified via official announcements if and when forked tokens were listed.
Important Note: If you held outstanding ETH loans — including negative equity in multi-currency margin accounts — at the time of the snapshot, repayment would be required using forked tokens under Scenario B. We strongly advised users to repay loans in advance to avoid complications.
Impact on Trading Services
OKX ensured minimal disruption across all trading products.
Spot Trading
Unaffected. ETH and ERC-20 spot markets remained fully operational.
Margin Trading
- Trading functionality for ETH cross and isolated margin pairs continued without interruption.
- However, ETH margin borrowing and VIP borrowing services were temporarily suspended.
- Interest rates could have been adjusted prior to suspension based on market conditions.
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Futures and Perpetual Swaps
No impact on:
- ETHUSDT and ETHUSD perpetual swaps
- ETHUSDT and ETHUSD futures
Funding rates, margin tiers, and index price components could be adjusted dynamically to manage risk amid expected volatility.
Options Trading
ETHUSD options trading continued normally throughout The Merge.
Grow Services: Staking, Savings & DeFi
OKX’s financial products were designed to adapt to major network events while protecting user investments.
Savings, Staking, Dual Investment & Smart Gain
These services remained unaffected. User-held ETH was included in any relevant snapshots. However, due to heightened price volatility during contentious forks, users were encouraged to implement additional risk controls.
Loan Services
ETH-backed loans continued operating normally. Collateral and liabilities were both accounted for in the snapshot:
- In a fork scenario, repayment obligations applied to forked tokens.
ETH 2.0 Staking
- New staking subscriptions paused on September 6 and September 15, 2022.
- BETH rewards were distributed as usual.
- Whether staked ETH was recognized on a potential PoW fork depended on how that chain handled ETH2.0 smart contracts — details were shared in a follow-up announcement.
DeFi Mining
- Subscriptions remained active.
- On-chain staking and redemption paused during upgrade windows.
- Redemption processing and profit distribution experienced temporary delays.
Fiat & Conversion Services
Both fiat on-ramps and ETH conversion services operated without interruption. Users could continue buying, selling, or converting ETH seamlessly.
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Frequently Asked Questions (FAQ)
Q: Did The Merge affect my ability to trade ETH?
A: No. Spot, futures, perpetual, and options trading for ETH continued normally. Only certain borrowing functions were temporarily restricted.
Q: Why were deposits and withdrawals paused?
A: This was a precautionary measure during high-risk network transitions to prevent transaction failures or loss of funds due to chain reorganizations.
Q: What happened if a new Ethereum PoW token was created?
A: OKX treated the PoS chain token as ETH and reviewed the PoW token for potential listing. Eligible users received forked tokens at a 1:1 ratio if distributed.
Q: Were staking rewards impacted?
A: No. BETH holders received rewards as scheduled. New staking was paused briefly around upgrade dates.
Q: How did The Merge affect margin traders with open positions?
A: Open positions were safe. However, borrowing was suspended, and risk parameters like margin tiers or funding rates could be adjusted to reflect market conditions.
Q: Was there any risk of losing my ETH during The Merge?
A: No. Your assets remained secure on OKX. The exchange managed technical aspects to ensure compatibility with the upgraded network.
Final Notes
The successful completion of The Merge represented a milestone for Ethereum and the broader blockchain ecosystem. By transitioning to proof-of-stake, Ethereum significantly reduced its energy consumption by over 99%, enhancing scalability and sustainability.
OKX played a crucial role in guiding users through this complex upgrade — prioritizing security, transparency, and uninterrupted access to digital asset services. As future upgrades like Surge, Verge, Purge, and Splurge roll out, staying informed and prepared will remain essential for every crypto participant.
For ongoing support, users are encouraged to refer to official OKX channels for verified updates during major network events.