The Ethereum Merge marked a pivotal moment in blockchain history, shifting the network from energy-intensive proof of work (PoW) to a more sustainable proof of stake (PoS) consensus mechanism. Despite widespread discussion, many misconceptions persist about what the Merge actually changed—and what it didn’t. This article clarifies the key updates, dispels common myths, explores concerns around centralization, and outlines the future roadmap that will shape Ethereum’s evolution through 2025 and beyond.
What Changed With the Ethereum Merge?
At its core, the Ethereum Merge refers to the integration of Ethereum’s original execution layer—previously known as Eth1—with the new proof-of-stake consensus layer, formerly called Eth2. This transition means validators now secure the network instead of miners, drastically reducing energy consumption by an estimated 99.95%.
For end users, however, there was no immediate change in experience. Your ETH balance remains unaffected, wallet addresses stay the same, and no action is required to "upgrade" your holdings. The ticker symbol (ETH) remains unchanged, and transactions continue to function as before.
👉 Discover how Ethereum’s upgrade impacts digital asset ecosystems today.
This rebranding—from Eth1/Eth2 to execution and consensus layers—is primarily semantic but helps streamline technical discussions moving forward.
Common Misconceptions About the Merge
Despite its significance, several myths have taken root in the crypto community.
Myth 1: Gas Fees Would Drop Immediately After the Merge
One of the most widespread misunderstandings is that the Merge would reduce high gas fees. In reality, gas fees are not affected by the shift to proof of stake. Scalability improvements come later, during the upcoming “Surge” phase, which will introduce sharding and rollups to dramatically increase throughput and lower transaction costs.
Myth 2: You Need 32 ETH to Stake
While running your own validator node requires 32 ETH, this isn’t the only way to participate in staking. Many users opt for liquid staking services or exchange-based staking pools that allow smaller contributions. However, these convenience-based solutions carry risks—especially related to centralization.
It’s also important to note that while stakers earn rewards over time, withdrawals were not enabled immediately post-Merge. Although this functionality has since been rolled out via the Shanghai upgrade, early participants faced a temporary lock-up period where capital was illiquid.
Validators still receive transaction fees and MEV (Maximal Extractable Value) earnings even before withdrawal capabilities are active—only the principal stake remains locked until withdrawal conditions are met.
Myth 3: Mass Validator Exits Could Crash the Network
Some feared a “stampede” of validators exiting after withdrawals became possible. However, Ethereum has built-in safeguards: only six validators can exit per epoch (approximately every 6.4 minutes), limiting daily exits to around 43,200 ETH. Given over 14 million ETH are staked, a full-scale exodus would take nearly a year—even under worst-case assumptions.
Additionally, Ethereum’s staking APR adjusts dynamically. If many validators leave, rewards increase to incentivize new participants, helping maintain network security and balance.
Centralization Risks in Ethereum Staking
As of 2025, over 430,000 validators are securing the Ethereum network with more than 14.6 million ETH staked. While decentralized in theory, concentration among major staking providers poses real risks.
Lido Finance alone controls roughly 30% of all staked ETH, making it the largest single staking entity. When combined with centralized exchanges like Binance, Coinbase, and Kraken, these top four entities control approximately 55% of total staked ETH.
Although Lido offers liquid staking derivatives (like stETH) and higher yields without requiring users to run nodes, this convenience comes at a cost: increased systemic risk and reduced decentralization. If one of these entities suffers a breach or outage, it could impact consensus integrity.
Efforts are underway to promote solo staking and distributed validator technology (DVT), but widespread adoption is still evolving.
👉 Learn how decentralized networks maintain long-term resilience in modern blockchain ecosystems.
The Four Phases After the Merge: Surge, Verge, Purge, and Splurge
With PoS now live, Ethereum’s development focuses on scalability, efficiency, and sustainability through four major upgrades:
1. The Surge – Scaling Through Sharding
Expected to roll out incrementally starting in 2025, the Surge introduces sharding, a technique that splits the blockchain into 64 parallel chains (shards). Each shard processes transactions independently before bundling data back to the main chain.
This architecture could enable up to 100,000 transactions per second (TPS)—a massive leap from Ethereum’s current ~15 TPS. Combined with rollups, which batch off-chain transactions and post compressed data on-chain, gas fees could drop to just $0.005–$0.05 per transaction.
2. The Verge – Efficient Data Verification
The Verge transitions Ethereum from Merkle trees to Verkle trees, enabling lighter client nodes and more efficient state verification. This reduces hardware requirements for running nodes, promoting greater decentralization by allowing more participants to validate the network.
3. The Purge – Reducing Network Bloat
Over time, blockchain data accumulates and slows down synchronization. The Purge aims to clean up historical data, delete obsolete logs, and streamline node operations—improving performance and reducing congestion.
4. The Splurge – Final Touches and Flexibility
The Splurge serves as a catch-all phase for minor protocol tweaks, optimizations, and adjustments across previous upgrades. It ensures smooth interoperability between all components without introducing disruptive changes.
Frequently Asked Questions (FAQ)
Q: Did the Ethereum Merge lower gas fees?
A: No. Gas fees remain unchanged post-Merge. Significant reductions are expected during the Surge phase with sharding and rollup integration.
Q: Can I unstake my ETH after the Merge?
A: Yes. The Shanghai upgrade in 2023 enabled ETH withdrawals. Users can now withdraw both rewards and principal after staking.
Q: Is Ethereum fully scalable now?
A: Not yet. While the Merge laid the foundation for scalability, full scaling will be achieved through future phases—especially the Surge.
Q: Why is Lido controlling so much staked ETH a problem?
A: High concentration in any single entity increases centralization risk. If Lido or another provider fails or is compromised, it could threaten network security and censorship resistance.
Q: How fast will Ethereum be after all upgrades?
A: With all phases complete, Ethereum aims to support up to 100,000 transactions per second, rivaling traditional payment networks in speed while maintaining decentralization.
Q: Do I need technical skills to stake ETH?
A: Not necessarily. You can use exchange-based staking or liquid staking pools like Lido. However, running your own node offers greater control and supports decentralization.
Ethereum’s journey is far from over. The Merge was not an endpoint—it was a necessary foundation for what comes next. As the network progresses through the Surge, Verge, Purge, and Splurge, we’re likely to see competitors struggle to keep pace.
While challenges remain—particularly around centralization and user accessibility—the long-term vision positions Ethereum as a scalable, secure, and sustainable platform for decentralized applications.
👉 Stay ahead of blockchain innovation—explore next-generation crypto platforms now.