The information is adapted from Nansen Research and is only meant for educational purposes

How do Withdrawals Function?

Understanding Ethereum withdrawals is vital, especially as they operate differently from other Proof of Stake (PoS) systems. Unlike other PoS chains that have a fixed time period before users can access staked tokens after requesting a withdrawal, Ethereum's unbonding time is variable.

There are two withdrawal methods: partial and full withdrawals. They each have distinct triggers, and processing a full withdrawal takes significantly longer. Additionally, there's a crucial step that must be completed by validators to qualify for these withdrawals.

What are Full Withdrawals and how do they function?

Full withdrawals in the Ethereum network pertain to the removal of an entire balance of a validator and can happen voluntarily or if the validator is penalized. The process is more complex and takes longer than partial withdrawals, consisting of three main steps: exit queue, minimum validator withdrawability delay, and automatic withdrawal queue.

Adapted from Nansen Research’s piece on withdrawal processes

Adapted from Nansen Research’s piece on withdrawal processes

In general, withdrawals are a multi-step process:

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The exit queue, which takes at least 32 minutes, is the first stage where validators must announce their intention to leave or are forced to leave if they are slashed. This queue helps maintain network security by controlling how many validators can leave at once, ensuring the network doesn't become vulnerable to attacks. The number of validators that can exit in a specific time frame (epoch) is determined by a churn limit, based on the total number of active validators in the network. After the exit queue, there's a mandatory delay of 27.3 hours before the automatic withdrawal process begins, which can take 2-5 days.

<aside> 💡 In simple terms, full withdrawals are like closing a bank account but with added security steps to make sure the overall system remains safe. It starts with a waiting line (exit queue) followed by a mandatory cooling-off period (withdrawal delay) to scrutinize for any suspicious activities, and finally, the account is closed (automatic withdrawal queue). The entire process is designed to ensure that the integrity and stability of the network are preserved.

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