Navigating Ethereum’s Pectra Upgrade: What to Know and How Galaxy Is Preparing
On May 7, 2025, Ethereum will undergo its next major protocol upgrade—Pectra—marking a significant milestone in the network’s ongoing evolution. With enhancements aimed at improving staker flexibility and user experience, this hard fork introduces a set of Ethereum Improvement Proposals (EIPs) that could impact both validators and everyday users. As with any major upgrade, Pectra carries technical risks that demand close attention. At Galaxy, we’re proactively managing this transition to ensure uninterrupted staking operations and continued security for our clients. Here's what you need to know.
What is Pectra?
Pectra is the next major Ethereum hard fork, scheduled to go live on May 7, 2025. This protocol upgrade activates a number of Ethereum Improvement Proposals (EIPs). Key highlights include:
Staker Flexibility: Validators can now be accumulating — holding balances from 32 to 2048 ETH and earning compounding rewards. The existing distributing validator model (which sends rewards above 32 ETH to a withdrawal address) remains supported.
User Experience Enhancements: Pectra advances account abstraction. Self-custodied wallets can now delegate to smart contracts, enabling new functionality such as sponsorship. Learn more here.
What is Galaxy Doing?
Galaxy has been closely monitoring Pectra through the testnet phase. While the risk of disruption is low, hard forks carry a potential for chain splits, especially if multiple Ethereum clients share a common bug, which was observed in testnet environments. To proactively manage this risk:
Pre-Hard Fork: Galaxy will shut down its staking validators 15 minutes prior to the upgrade to avoid any unintended consensus participation.
Monitoring: Our Ethereum nodes will remain operational, and our team will monitor the upgrade to confirm network stability and ensure our infrastructure tracks the correct, canonical chain.
Post-Hard Fork: Unless issues arise, Galaxy will reenable staking validators within one hour after the fork completes.
At Galaxy, risk management is central to everything we do. We remain committed to keeping your assets secure and staking operations stable through all protocol upgrades.
Explore Galaxy's latest Research on Pectra:
ACDC #153: Pectra on Hoodi, The Final Testnet Upgrade - 3.25.25
Setting the Record Straight on Pectra Testing w/ Pari and Marius - 3.12.25
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