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Ethereum’s Shanghai (Shapella) Upgrade, Demystified

· 6 min read
Dora Noda
Software Engineer

Withdrawals, gas tweaks, and what came next—without the hype.


The Short Version

The Shapella upgrade, a portmanteau of Shanghai (for the execution layer) and Capella (for the consensus layer), went live on Ethereum on April 12, 2023. Its landmark feature was enabling staking withdrawals for the first time since the Beacon Chain's launch.

The headline change, EIP-4895, introduced a system where validator withdrawals are automatically "pushed" from the consensus layer to the execution layer, requiring no user transaction or gas fees. Alongside this, four smaller EIPs shipped to fine-tune the EVM, including gas cost reductions (Warm COINBASE), bytecode optimizations (PUSH0), and contract creation limits (Initcode metering). The upgrade also served as a final warning to developers that the SELFDESTRUCT opcode was on its way out.

Shapella effectively closed the loop on the Merge, and the next major upgrade, Dencun, followed on March 13, 2024, shifting the network's focus to scalability with EIP-4844 "blobs."


Why Shapella Was a Critical Milestone

From the Beacon Chain's inception until April 2023, staking ETH was a one-way street. You could deposit 32 ETH to help secure the network and earn rewards, but you couldn't get your principal or those consensus-layer rewards back out. This locked liquidity was a significant commitment and a barrier for many potential stakers.

Shapella changed everything by opening the exit door.

The upgrade's core was EIP-4895, which ingeniously designed a system-level "withdrawal operation." Instead of requiring stakers to craft a transaction and pay gas to withdraw, the protocol itself now automatically sweeps eligible funds from the consensus layer and pushes them into the execution layer. This clean, push-based design minimized complexity and risk, making the change much easier to test and deploy safely.


What Actually Changed: The EIPs in Plain English

Shapella was a bundle of five key Ethereum Improvement Proposals (EIPs):

  • EIP-4895 — Beacon Chain Withdrawals (Push-based) This was the main event. It enabled both partial (rewards) and full (principal + rewards) withdrawals to flow from the consensus layer to a staker's specified withdrawal address. The key innovation is that these are not user-initiated transactions; they are automatic operations embedded in proposed blocks.

  • EIP-3651 — “Warm COINBASE” This EIP made a small but important gas optimization. In the EVM, COINBASE refers to the address of the block producer (the validator), not the exchange. Before Shapella, the first time a smart contract accessed this address within a transaction, it incurred a higher gas cost. EIP-3651 made the COINBASE address "warm" by default, reducing the gas cost for protocols that frequently interact with it, such as those paying MEV tips directly to the block builder.

  • EIP-3855 — PUSH0 Opcode A simple but elegant addition to the EVM. This new opcode, PUSH0, does exactly what it says: it pushes the value zero onto the stack. Previously, developers had to use heavier, more expensive opcodes to achieve this. PUSH0 makes bytecode slightly smaller and more gas-efficient, especially for the numerous contracts that initialize variables to zero.

  • EIP-3860 — Limit & Meter initcode This change introduced two rules for the code used to create a smart contract (initcode). First, it capped the maximum size of initcode at 49,152 bytes. Second, it added a small gas fee for every 32-byte chunk of this code. This prevents denial-of-service attacks involving overly large contracts and makes contract creation costs more predictable.

  • EIP-6049 — Deprecate SELFDESTRUCT (Warning) This wasn't a code change but a formal warning to the developer community. It signaled that the SELFDESTRUCT opcode, which allows a contract to delete itself and send its ETH to a target address, would have its functionality drastically changed in a future upgrade. This gave developers time to phase out their reliance on it before the Dencun upgrade later altered its behavior with EIP-6780.


Withdrawals 101: Partial vs. Full

Shapella introduced two types of automatic withdrawals, each with its own rules.

  • Partial Withdrawals These are automatic rewards sweeps. If a validator's balance grows above 32 ETH from consensus-layer rewards, the protocol automatically "skims" the excess amount and sends it to the designated withdrawal address. The validator remains active and continues its duties. This happens with no action required from the staker.

  • Full Withdrawals (Exiting) This is for stakers who want to stop validating and retrieve their entire balance. The staker must first broadcast a voluntary exit message. After a waiting period, the validator becomes eligible for a full withdrawal. Once processed in the sweep, the entire balance is sent to the withdrawal address, and the validator is no longer part of the active set.

Throughput and Cadence

The network is designed to process withdrawals smoothly without causing instability.

  • Up to 16 withdrawals can be included in each block (every 12 seconds), allowing for a maximum of approximately 115,200 withdrawals per day.
  • The block proposer scans the list of active validators and includes the first 16 eligible withdrawals. The next block proposer picks up where the last one left off, ensuring every validator gets a turn in the queue.
  • To prevent a mass exodus from destabilizing the network, the number of validators that can exit per epoch (every ~6.4 minutes) is limited by a churn limit. This limit is dynamic based on the total number of active validators, smoothing out exit waves.

It's also important to note that consensus-layer rewards are handled by this EIP-4895 withdrawal mechanism, while execution-layer rewards (priority fees and MEV) are sent directly to a validator's configured fee recipient address and are available immediately.


What Came Next: Dencun and the Road to Scalability

Shapella marked the successful completion of the "Merge era." With staking now a fully liquid, two-way process, developers turned their attention to Ethereum's next big challenge: scalability.

The very next major upgrade, Dencun (Deneb + Cancun), arrived on March 13, 2024. Its centerpiece was EIP-4844, which introduced "blobs"—a new, cheaper way for Layer 2 rollups to post transaction data to the Ethereum mainnet. This dramatically lowered transaction fees on L2s and was a massive step forward on the rollup-centric roadmap. Dencun also delivered on the promise of EIP-6049 by implementing EIP-6780, which significantly curtailed the power of the SELFDESTRUCT opcode.


The Big Picture

Shapella was the essential confidence milestone for Ethereum's Proof-of-Stake consensus. By enabling withdrawals, it de-risked staking, restored liquidity, and affirmed the network's ability to execute complex, coordinated upgrades. It also delivered a handful of pragmatic EVM improvements that cleaned up technical debt and paved the way for future optimizations.

In short, Shapella didn't just open the exit door for stakers—it solidified the foundation of the post-Merge era and cleared the runway for Ethereum to focus on its next frontier: mass scalability.

How to Build a Lasting Social Presence in Web3

· 8 min read
Dora Noda
Software Engineer

  • A practical guide for founders, builders, and creators on how to build a verifiable identity and community from the ground up, powered by BlockEden.xyz.*

Why “Web3 Social” Is a Different Game

For decades, our digital social lives have been built on rented land. We created content for platforms that sold our attention, built audiences we couldn't access directly, and generated value we rarely shared in. Web3 changes the entire dynamic.

It shifts the center of gravity for identity, content, and reputation away from centralized platforms and into user-owned wallets. Your address becomes your handle. Your on-chain activity becomes your public resume. Communities form around shared ownership and verifiable stakes, not just ad-driven feeds.

The upside? You keep the upside. Your audience, your content, your value—it’s all yours. The catch? You must design your own distribution and engagement strategy from first principles. This guide will show you how.

1. Claim Your On-Chain Identity

Before you can build a following, you need a name. In Web3, your long, hexadecimal wallet address isn't just impractical; it's anonymous. A human-readable name is the first step toward building a recognizable brand.

  • Register an ENS Name: Your ENS name (e.g., yourname.eth) is the new @username. It's a decentralized, user-owned handle that simplifies payments, logins, and social interactions across the Ethereum ecosystem. With registrations and renewals hitting fresh highs in Q1 2025, according to data aggregator Accio, ENS has cemented itself as the de facto naming layer.
  • Mint a Lens Profile: To publish content across a decentralized social graph, mint a Lens Protocol profile NFT. This profile becomes your passport to a growing number of compatible apps, allowing you to own your content and social connections.
  • Secure Matching Web2 Usernames: While your audience migrates to Web3, bridge the gap. Secure matching usernames on platforms like X (formerly Twitter), GitHub, and Discord to avoid confusion and create a consistent cross-platform brand identity.

2. Choose the Right Protocol(s)

Where you build matters. Instead of chasing the latest features, think about distribution first. Go where your target users—be they developers, collectors, or creators—already hang out.

  • Lens Protocol V2: As reported by Blockworks, Lens V2’s Open Actions are a game-changer. They allow you to embed custom functions directly into your posts, letting followers mint an NFT, join a DAO, or purchase an item without ever leaving their social feed.
  • Farcaster + Frames V2: Farcaster has rapidly become a hub for the crypto-native developer community. Its killer feature, Frames, lets you build full-screen, interactive mini-apps directly inside a post (a "cast"). Frames V2 expands this capability, enabling complex, multi-step on-chain transactions, perfect for tutorials, product demos, or immersive experiences. Cointelegraph has highlighted its explosive growth as a key trend.
  • friend.tech Clubs: If you're looking to monetize access and reward early believers, the Clubs feature on friend.tech provides a powerful model. These token-gated group chats, covered by cryptotvplus.com, create exclusive spaces where access is tied to holding a specific token, aligning incentives between you and your community.

BlockEden.xyz Tip: All three of these powerhouse protocols run on EVM-compatible chains. To ensure your social app or interactive Frame remains fast and responsive—even during peak network congestion or airdrop season—point your applications at BlockEden.xyz's high-throughput RPC endpoints. A snappy UX is non-negotiable for retaining users.

3. Token-Gate for Depth, Not Hype

Scarcity, when used correctly, is a powerful tool for converting passive followers into committed members. Token-gating—restricting access to content or perks based on ownership of an NFT or ERC-20 token—is how you build that core, dedicated group.

  • Create Exclusive Tiers: Use NFT or token ownership to unlock private Discord channels, early access to products, exclusive merchandise, or live streams. As reported by Vogue Business, major luxury brands from Adidas to Gucci have seen higher loyalty and engagement after gating perks this way.
  • Keep It Simple and Transparent: Avoid overly complex tier systems. Start with simple roles (e.g., "Builder," "OG," "Supporter") and, crucially, publish the criteria for achieving them on-chain. This transparency builds trust and gives your community a clear path for deeper participation.

4. Ship Content Natively On-Chain

Deliver value where your users and their wallets already are. Instead of trying to pull users to a Web2 blog, embed your content directly into their native Web3 experience.

  • Mirror: For long-form content like essays, project updates, or manifestos, Mirror is the standard. It allows you to publish articles that can be collected as free or paid NFTs, creating a direct economic link between your writing and your readers.
  • Warpcast Frames: Use the interactive nature of Farcaster Frames to create embedded tutorials, product quizzes, user surveys, or even simple games. This turns passive content consumption into active engagement.
  • Lenster or Hey.xyz: For Twitter-style micro-content, updates, and community conversations, use Lens-native clients like Lenster or Hey.xyz. Regularly reference your .eth or .lens handle to reinforce your on-chain identity with every post.

5. Cultivate Community Like a DAO

In Web3, a small, vibrant, and engaged group is far more valuable than a large but silent follower count. Your goal is to foster a sense of shared ownership and purpose, much like a Decentralized Autonomous Organization (DAO).

  • Be Present and Accessible: Host regular AMAs on Discord, voice chats on Telegram, or town halls in a token-gated channel. Create forums for on-chain voting on community proposals to give members a real stake in your project's direction.
  • Reward Participation, Not Just Investment: Use tools like POAPs (Proof of Attendance Protocol) to award non-transferable NFTs to members who attend events or contribute in meaningful ways. These act as on-chain reputation markers.
  • Establish Clear Governance: A healthy community needs clear rules. Set a public code of conduct and moderate actively. Recent 2025 community-building research from tokenminds.co shows that transparency and inclusivity remain the top drivers for member retention.

6. Measure What Matters

Forget vanity metrics like follower counts on centralized platforms. In Web3, you have direct access to a rich dataset of on-chain activity that tells you what your community truly values.

  • Track On-Chain Growth: Use blockchain analytics platforms like Dune or Nansen to write queries that track your on-chain follower growth (e.g., new .lens profile follows) or token holders.
  • Monitor True Engagement: Measure what matters: count NFT mints from your posts, analyze token-gated page hits, and monitor calls made to your project's smart contracts. This is direct, verifiable proof of engagement.
  • Automate Your Analytics Loop: Don't just collect data—act on it. BlockEden.xyz's API marketplace offers a suite of historical and real-time data endpoints. Feed this data back into your content and product decisions to create a powerful, automated feedback loop that optimizes for what your community wants.

7. Stay Secure & Consistent

In a world of user-owned assets, security is paramount. Losing a private key is infinitely worse than losing a password.

  • Protect Your Profile: Use a hardware wallet or a multi-sig solution like Safe to store your primary identity assets like your ENS name and Lens profile NFT. For daily operations, consider social-recovery schemes like Safe Recovery.
  • Maintain Cryptographic Continuity: Always sign posts and transactions from the same address. This creates a verifiable, unbroken history of your on-chain activity, building trust over time.
  • Rotate Signers, Not Identities: If you have a team managing your social presence, use smart contract wallets that allow you to add or remove authorized signers (hot wallets) without ever changing the core identity (the cold wallet). This ensures your brand's identity outlasts any single team member.

Your Web3 Social Playbook

Building a social presence in Web3 is less about chasing viral trends and more about forging verifiable, two-way relationships with a core group of believers. The tools are new, but the playbook is timeless: create genuine value, show up consistently, and respect your community.

Here’s how to get started with BlockEden.xyz today:

  1. Start Small: Claim one ENS name, mint one Lens handle, and start one community chat on Farcaster or Discord.
  2. Automate Your Plumbing: Route every social smart contract call—from your Frames to your minting site—through BlockEden.xyz's reliable RPC infrastructure. This will protect you from gas spikes and frustrating rate limits.
  3. Iterate in Public: Ship experiments weekly. On-chain mistakes are transparent, but they're also forgivable when you acknowledge and fix them quickly.

With the right identity, protocols, and infrastructure, your brand can grow at the speed of the network while you retain the value you create.

Ready to build? Spin up a free, high-performance endpoint on BlockEden.xyz and put these steps on-chain today.