The transition of Ethereum from Proof-of-Work (PoW) to Proof-of-Stake (PoS) — known as "the Merge" — marked one of the most significant milestones in blockchain history. Completed on September 15, 2022, this upgrade fundamentally reshaped Ethereum’s energy consumption, security model, and long-term sustainability. In the 24 hours following the Merge, a cascade of technical, economic, and community-driven events unfolded across the ecosystem. Let’s walk through the timeline and examine what truly happened when Ethereum entered its new era.
The Final Moments of Proof-of-Work
At 14:43 UTC on September 15, the last PoW block on Ethereum was mined. The NFT project @VanityBlocks commemorated the historic moment by minting an NFT titled “The Last POW Block”. Embedded within the transaction was a quote from ethnobotanist and philosopher Terence McKenna:
"Once you make a decision, the universe conspires to make it happen. Go do what you came here to do — the universe will not block you. That is the secret."
This poetic message captured the spirit of transformation that defined Ethereum’s journey — a shift not just in consensus mechanism, but in vision.
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The Birth of the First Proof-of-Stake Block
Just minutes later, Ethereum produced its first PoS block at height 15,537,394. The validator responsible was identified by the address 0xeee27662c2b8eba3cd936a23f039f3189633e4c8. HashKey Capital, a prominent blockchain investment firm, inscribed a message in the block: "Supporting the next generation of blockchain innovation."
Despite fears of network instability, Ethereum processed transactions seamlessly. However, gas fees briefly spiked to 108 gwei, reflecting short-term volatility as traders and protocols adjusted to the new environment.
Vitalik Buterin Celebrates a Historic Achievement
In the lead-up to the Merge, Vitalik Buterin, co-founder of Ethereum, highlighted that transitioning to PoS would reduce global electricity consumption by 0.2% — equivalent to the annual energy use of countries like Ireland or Norway. After the successful transition, he praised the collective effort:
"This is a major moment in the Ethereum ecosystem. Everyone who helped make the Merge happen should feel very proud today."
His words underscored not just a technological triumph, but a collaborative achievement involving developers, validators, researchers, and node operators worldwide.
Miner Migration and Hashrate Redistribution
With Ethereum no longer mineable via PoW, miners had to pivot quickly. Within hours:
- Ethereum Classic (ETC) saw its hashrate surge to 92.48 TH/s, a 55.17% increase.
- Ravencoin (RVN) jumped to 10.092 TH/s, up 35.46%.
- Conflux (CFX) reached 1.6158 TH/s, rising 55.74%.
By 21:40 UTC, Ethan Vera, COO of mining pool Luxor, noted that only 20–30% of former Ethereum miners had migrated to alternative chains. The rest had shut down operations due to declining profitability and increasing competition.
This redistribution signaled a broader realignment in the mining landscape — one where GPU-based mining found temporary refuge, but long-term viability remained uncertain.
Exchange Support and DeFi Continuity
By 16:00 UTC, major exchanges including Binance and FTX restored ETH deposits and withdrawals. DeFi protocols such as Uniswap, Aave, and Curve continued operating without disruption. On Aave, ETH borrowing rates dropped below 75% utilization as users repaid loans post-Merge, indicating reduced market anxiety.
Meanwhile, Binance’s ETHUSDT perpetual funding rate improved from nearly -0.5% to -0.24%, suggesting decreasing bearish sentiment and reduced hedging activity.
Emergence of PoW Forks: ETHW and ETF
As expected, several groups attempted to preserve Ethereum’s PoW chain:
- At 21:00 UTC, Poloniex — led by Justin Sun — announced support for EthereumFair (ETF), a fork developed by the ClassZZ community, rather than the more widely promoted ETHPOW.
- BitCoke declared it would redirect all mining hardware to ETF and list the token.
- Shortly after, FTX and Bybit launched EthereumPoW (ETHW).
- At 22:06 UTC, ETHW officially went live, publishing RPC endpoints and Chain ID details.
- Fish Pool activated an ETHW mining pool, redirecting residual hash power from its original ETH operations.
ETHW maintained compatibility with Ethash, supporting both GPUs and ASIC miners — offering a lifeline for displaced mining infrastructure.
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Market Reaction and Price Movements
Market dynamics shifted rapidly:
- By 23:05 UTC, ETH price dipped below $1,500.
- ETHW settled around $16.94**, later dropping to **$13.20 by the next morning.
- ETF traded at $17.33 with 35 TH/s of hashrate.
- ETC stabilized at $35.93 with hashrate peaking at 270 TH/s (down from a high of 300 TH/s).
Collectively, PoW forks represented less than 4% of Ethereum’s total market cap, underscoring limited investor appetite for maintaining legacy chains.
Validator Centralization Trends
Post-Merge data revealed early centralization patterns in staking:
| Entity | Stake Share |
|---|---|
| Lido | 30% |
| Coinbase | 14% |
| Kraken | 8.3% |
| Binance | 6.5% |
Compare this to PoW mining pools:
- Ethermine: 28.9%
- F2Pool: 14.5%
- Hiveon: 10%
While overall concentration levels appear similar, there’s a notable shift: U.S.-based exchanges now control a larger share of consensus power, raising regulatory and decentralization concerns.
Regulatory Shadow: SEC Questions Staking Legality
On September 16, The Wall Street Journal reported that SEC Chair Gary Gensler suggested PoS systems might fall under securities regulation. He argued that when users stake tokens through intermediaries like exchanges, it resembles lending — potentially triggering the Howey Test for securities classification.
Gensler stated:
"If a platform offers staking services to customers, it looks a lot like lending — just with different labels."
This signaled ongoing regulatory scrutiny over staking-as-a-service models — a challenge that continues to shape compliance strategies across centralized platforms.
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Frequently Asked Questions (FAQ)
Q: Did Ethereum completely stop using energy after the Merge?
A: No — but energy consumption dropped by over 99%. Instead of energy-intensive mining, PoS relies on validators who stake ETH, drastically reducing environmental impact.
Q: Can I still mine Ethereum?
A: Not on the mainnet. Ethereum no longer uses Proof-of-Work. Miners have moved to chains like ETC, RVN, CFX, or PoW forks such as ETHW.
Q: Is staking ETH safe after the Merge?
A: Yes — staking is now integral to Ethereum’s security. However, always use trusted providers or run your own node if possible.
Q: Why did ETH price drop after the Merge?
A: Market sentiment was mixed. Some traders anticipated a "sell-the-news" event, while others remained cautious about execution risks and regulatory implications.
Q: Are ETHW or ETF legitimate successors to Ethereum?
A: Neither has gained significant traction. They represent minority forks with limited developer support and ecosystem adoption compared to mainnet Ethereum.
Q: Could staking be regulated as a security in the U.S.?
A: Potentially — regulators like the SEC have questioned whether staking services constitute investment contracts. Legal clarity is still evolving.
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Ethereum Merge, Proof-of-Stake, ETH staking, Ethereum upgrade, PoS vs PoW, Ethereum forks, ETHW, blockchain sustainability
The first 24 hours after Ethereum’s shift to Proof-of-Stake were calm yet transformative — a testament to years of planning and engineering excellence. While challenges around decentralization and regulation remain, the Merge laid the foundation for a more scalable, secure, and sustainable blockchain future.