The Ethereum Merge: What Gemini Users Need to Know

Update: September 13, 2022

The event much of the crypto ecosystem has been eagerly anticipating is nearly here! The Ethereum Merge is expected to begin the evening of Wednesday, September 14, 2022, Eastern Time. As highlighted in the blog below, no action is required by Gemini users to upgrade, and your funds will remain safe throughout the Merge.

Here are some other details to keep in mind:

• Deposits of ETH and ERC-20 tokens are expected to be disabled around 9pm EST on Wednesday, September 14, 2022. Once the Merge has been completed and we have independently verified the stability of the network, deposits will be turned back on. We expect deposits to be enabled early Thursday, September 15, 2022. During this period, please refrain from sending ETH or ERC-20 tokens to Gemini, as they may not be recoverable. Note: follow our status page for specific timing updates.
• A snapshot of all ETH and ERC-20 wallet balances will be taken about one hour before the Merge is set to take place. This snapshot will serve as a source of truth for funds held by users on Gemini prior to the Merge.

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Likely the most consequential Ethereum network upgrade yet, termed “The Merge,” is planned for mid-September. The upgrade will codify Ethereum’s long-awaited move to Proof-of-Stake (PoS) from its existing Proof-of-Work (PoW) consensus mechanism.

Following years of planning, and numerous test merges, Ethereum is on track to merge its existing execution layer (Mainnet) with the Beacon Chain, its parallel PoS system. The Merge is expected to make Ethereum more scalable, secure, and sustainable, with a projected 99.95% reduction in energy consumption.

What to Expect as a Gemini User

There are three main points to keep in mind:

1. Gemini will support Ethereum’s PoS chain — Following the Merge, we will support the Ethereum PoS chain. We expect all Ethereum (ETH) and ERC-20 assets held at Gemini to be available on the PoS chain following the Merge.
2. No action is needed to upgrade — As a Gemini user, you do not need to take any action in order to shift your assets to the new PoS chain.
3. All funds held at Gemini will remain secure throughout the Merge — The Gemini team is actively planning for Merge-related disruptions to our operations, which are normal and expected when blockchains undergo significant updates. While there may be some short-term impacts to Gemini’s operations, all Gemini funds will remain secure throughout the Merge.

Anticipated Impact on Gemini Operations

Around the time of the Merge, there is potential for some short-term disruptions as validators, developers, applications, and users move over to the PoS Beacon chain. We expect some Gemini systems to be impacted by these disruptions, including:

• Deposits and Withdrawals — We are expecting to pause Ethereum (ETH) and ERC-20 deposits and withdrawals for a short period of time before and after the Merge as we assess network stability.
• Wallet Balances — To ensure parity between ETH and ERC-20 assets held on Gemini prior to and after the Merge, we will take a snapshot of all balances before the Merge and make sure that assets are correctly reflected post-Merge.
• Gemini dollar (GUSD) — Following the Merge, GUSD assets will be shifted to Ethereum’s PoS chain, after which they will be redeemable.

All Gemini trading systems will remain active throughout the Merge.

At Gemini, we believe this milestone for the Ethereum ecosystem will drive increased adoption, security, and sustainability of blockchain networks.

As we get closer to the Merge, we will continue to communicate short-term changes to our systems as we prepare for the transition to Ethereum’s PoS blockchain. Please refer back to this blog for updates as additional information becomes available.

Onward and Upward!

Team Gemini