Charles Hoskinson, the creator of Cardano (ADA), referred to Ethereum (ETH) as the “Hotel California of Crypto” in reaction to a tweet claiming that ETH staking withdrawals may be delayed beyond the Shanghai upgrade.
Hotel California is about a jail from which no one can escape. A snapshot from the Ethereum developer’s Discord channel displayed Micah Zoltu, founder of Serv.eth Support, stating that all documentation and publications have highlighted that there is no real timeline for withdrawals of staked ETH.
The image capture reads: “No, I’m not arguing that we should never adopt withdrawals. I do not see any great urgency. I believe that there are many more important factors for the long-term health of Ethereum than allowing stakers to withdraw in 2023 as opposed to 2024.”
The remark seems to be a response to the email sent by Kraken informing its clients that they will be unable to access their staked ETH until after the Shanghai upgrade.
The Shanghai improvement is anticipated to occur six to twelve months following the Merge. CryptoSlate reached out to Micah Zoltu for clarity on his remark but did not get an instant reply.
After the Shanghai upgrade, many community members anticipate having access to their staked Ethereum by 2023, however, the most recent information from the Ethereum devs discord channel says otherwise.
Additionally, the Ethereum Foundation announced that the “Shanghai update will permit stake withdrawals.”
Charles Hoskinson also questioned Ethereum’s staking mechanism, questioning whether there wasn’t another way to “create proof of stake without locking assets in this manner.”
Cardano PoS, unlike Ethereum PoS, does not require users to lock their assets, since they may stake straight from their wallets and withdraw at any time.
Micah reaffirmed his stance about why withdrawals are not a priority. According to him, stakers are rich individuals who can afford the costly equipment required for staking.