The Ethereum network’s long-anticipated transition from proof-of-work (PoW) to proof-of-stake (PoS)—commonly known as The Merge—marked a pivotal moment in blockchain evolution. As this major upgrade approached in September 2022, OKX, one of the world’s leading cryptocurrency platforms, issued a comprehensive service update to guide users through potential disruptions and asset implications.
This article breaks down OKX’s official announcement, offering clarity on how the exchange prepared for The Merge, what changes users could expect, and how digital assets were safeguarded during the transition.
Understanding The Merge: A Two-Phase Upgrade
The Merge wasn’t a single event but a two-stage process designed to seamlessly integrate Ethereum’s existing mainnet with the Beacon Chain, its proof-of-stake counterpart.
🔹 Phase 1: Bellatrix (Consensus Layer Upgrade)
Scheduled for September 6, 2022 (UTC), the Bellatrix upgrade activated the Beacon Chain’s readiness for The Merge. This consensus-layer update ensured that Ethereum validators were synchronized and prepared for the shift in network consensus.
👉 Discover how leading platforms managed critical blockchain upgrades like The Merge.
🔹 Phase 2: Paris (Execution Layer Transition)
The core of The Merge occurred during the Paris upgrade, expected around September 15, 2022 (UTC). At this point, Ethereum’s execution layer transitioned from energy-intensive proof-of-work to environmentally sustainable proof-of-stake once the network reached a Terminal Total Difficulty (TTD) of 58,750,000,000,000,000,000,000.
Once triggered:
- The PoW chain was permanently retired.
- All transaction processing moved to the PoS-based Beacon Chain.
- Ethereum became more energy-efficient by over 99%.
How OKX Protected User Assets During The Merge
Recognizing the volatility and technical uncertainty surrounding hard forks, OKX implemented proactive measures to protect user funds and maintain platform stability.
⚠️ Temporary Suspension of ETH Deposits and Withdrawals
To prevent transaction failures or loss of funds due to chain instability:
- ETH and ERC-20 token deposits/withdrawals were paused during both upgrade phases.
- Exact timing was communicated in advance via official announcements.
- Cross-chain bridge services were also temporarily suspended.
Users were strongly advised to deposit ETH into their OKX accounts before the upgrade windows to avoid delays.
Possible Scenarios: What Happens If a Fork Occurs?
While The Merge aimed for a unified transition, there was speculation about a potential hard fork creating a new token on a continuing PoW chain. OKX outlined two scenarios:
✅ Scenario A: No New Token Created
- Normal operations resume after confirmation of network stability.
- ETH and ERC-20 deposits, withdrawals, and trading continue uninterrupted.
- No forked tokens are issued.
🔄 Scenario B: A New Forked Token Emerges
In the event of a split:
- ETH on the PoS chain remains "ETH" — the canonical asset recognized by OKX.
- Tokens on the legacy PoW chain are treated as forked assets.
- Users receive an airdrop of forked tokens at a 1:1 ratio based on their ETH holdings at snapshot time.
- These tokens undergo OKX’s standard listing review before trading is enabled.
Note: If users had outstanding ETH loans or negative equity in multi-currency margin mode at the time of the snapshot, repayment would be required using the forked token in Scenario B.
Impact on Trading Services
Despite network changes, most trading functions remained operational with targeted risk controls.
📊 Spot Trading
Unaffected. ETH and ERC-20 spot markets continued normally.
💹 Margin Trading
- ETH cross and isolated margin trading remained active.
- However, ETH margin borrowing and VIP borrowing services were suspended.
- Interest rates could be adjusted pre-suspension based on market conditions.
📈 Futures & Perpetual Swaps
- ETHUSDT and ETHUSD perpetual swaps unaffected.
- Futures contracts continued without interruption.
🎯 Options Trading
ETHUSD options trading proceeded as usual.
Due to expected price volatility, OKX reserved the right to implement additional risk controls:
- Adjusting margin tiers for ETH derivatives.
- Modifying discount rates in multi-currency and portfolio margin modes.
- Tweaking funding rates and price limits for perpetual swaps.
- Updating index components and mark prices for ETH contracts.
👉 See how top crypto platforms manage high-volatility events like blockchain upgrades.
Grow Services: Staking, Savings & DeFi
OKX’s financial products were largely resilient to The Merge, though temporary suspensions applied during critical upgrade windows.
✅ Unaffected Services
- Savings
- Dual Investment
- Smart Gain
These services continued operating normally. However, users were reminded to manage risk due to potential price swings during contentious forks.
🏦 Loan Services
Unchanged. ETH used as collateral or held as liability was included in the snapshot. In a fork scenario, liabilities would need to be repaid using the applicable forked token.
🔁 ETH 2.0 Staking
- New staking subscriptions paused on September 6 and September 15.
- BETH rewards distributed as usual.
- Whether staked ETH qualified for snapshots depended on how the forked chain handled ETH2.0 smart contracts—details provided in a follow-up notice.
🌿 DeFi Mining
- Project subscriptions unaffected.
- On-chain staking and redemption paused during upgrade days.
- Profit distributions delayed accordingly.
Fiat & Conversion Services Remain Stable
Users could continue using:
- Fiat gateways (buying/selling crypto with fiat).
- Instant conversion between ETH and other cryptocurrencies.
No service interruptions were expected in these areas.
Frequently Asked Questions (FAQ)
Q: Will I lose my ETH during The Merge?
A: No. Your ETH balance remains secure. The Merge was a protocol upgrade, not a token swap. As long as your funds are in a secure wallet or on a trusted exchange like OKX, they are safe.
Q: Do I need to take any action before The Merge?
A: It’s recommended to deposit ETH to OKX beforehand if you plan to trade or withdraw post-Merge. This ensures you’re not affected by temporary suspension of withdrawals.
Q: What happens if a new Ethereum PoW token is created?
A: OKX treats the PoS chain token as official ETH. Any PoW fork token will go through listing review before trading. Eligible users receive it via airdrop at 1:1.
Q: Can I still earn staking rewards during The Merge?
A: Yes. BETH holders continued receiving rewards. However, new staking sign-ups were paused on key upgrade dates.
Q: Will futures trading stop during The Merge?
A: No. ETH futures and perpetual swaps remained active. However, increased volatility may trigger automatic risk management adjustments.
Q: How does The Merge affect my open margin positions?
A: Existing positions remain open, but new ETH margin borrowing was suspended. High leverage positions are at greater risk during volatile periods—consider reducing exposure.
Core Keywords
This article integrates key SEO terms naturally throughout:
- ETH Merge
- Ethereum Merge
- proof-of-stake upgrade
- OKX crypto exchange
- ETH staking
- blockchain hard fork
- cryptocurrency trading risks
- Ethereum network upgrade
These terms reflect common search queries around Ethereum’s historic transition and user concerns about asset safety and platform functionality.
As one of the most significant milestones in blockchain history, The Merge required careful coordination between developers, exchanges, and users. OKX’s transparent communication and structured response helped ensure a smooth experience for millions of traders navigating this transformative event.