Ethereum’s Merge Milestone: Kiln Testnet Concludes, Ropsten Takes Center Stage

May 1, 2022 – Ethereum’s long-awaited transition to Proof-of-Stake (PoS) reached a critical juncture today as developers officially shut down the Kiln testnet, marking the completion of its role in simulating the Merge. The Ethereum Foundation confirmed that Ropsten, the oldest surviving Ethereum testnet, will now serve as the final staging ground for the mainnet transition, expected in Q3 2022.

This strategic shift signals that Ethereum’s shift from energy-intensive mining to eco-friendly staking is entering its last phase of testing, bringing the network one step closer to delivering on its promise of 99.95% reduced energy consumption.

Why the Kiln Testnet Closure Matters

The Kiln testnet, launched in March 2022, was the first public test environment to fully simulate the Merge by combining Ethereum’s existing Proof-of-Work (PoW) chain with the Beacon Chain’s Proof-of-Stake (PoS) consensus. Its successful shutdown confirms:

✅ Consensus mechanism stability – Validators reliably produced blocks post-Merge.
✅ Smart contract compatibility – DeFi protocols and NFTs functioned normally.
✅ Staking reward accuracy – ETH issuance matched economic models.

However, Kiln’s retirement also exposed remaining challenges:
⚠️ Validator centralization risks – Lido Finance and other large stakers controlled over 30% of testnet validation.
⚠️ MEV (Maximal Extractable Value) exploitation – Some validators manipulated transaction ordering for profit.

Ropsten: The Final Testnet Before Mainnet Merge

As Ethereum’s oldest and most battle-tested testnet, Ropsten will now undergo the same Merge process under real-world conditions, including:

1. Shadow Fork Testing (May 10–15)

   • A "dry run" of the Merge without disrupting existing Ropsten operations.

2. Full Merge Deployment (Late May)

   • Permanent transition to PoS, mimicking the mainnet upgrade.

3. Post-Merge Monitoring (June)

   • Tracking validator performance and slashing incidents.

Developer Quote:
"Ropsten’s longevity makes it ideal for stress-testing edge cases. If it succeeds here, we’re ready for mainnet."
– Tim Beiko, Ethereum Foundation

Implications for ETH Stakers and the Market

1. Staking Rewards May Fluctuate

• Current ETH staking APY: 4.8% (Beacon Chain)

• Post-Merge, yields could rise to 6-8% as fee burning reduces supply.

2. Liquidity for Staked ETH

• Platforms like Lido (stETH) and Coinbase (cbETH) now offer liquid staking derivatives, enabling trading pre-Merge.

3. Regulatory Scrutiny Intensifies

• The SEC is reportedly examining whether staking-as-a-service providers (e.g., Kraken, Coinbase) violate securities laws.

The Road Ahead: Key Dates to Watch

• May 10–15: Ropsten shadow fork testing

• Late May: Ropsten full Merge deployment

• June 8: All Core Developers call (final Go/No-Go decision)

• Q3 2022: Target for mainnet Merge

Conclusion: A Pivotal Moment for Crypto

The Kiln testnet’s retirement and Ropsten’s ascendancy confirm Ethereum is in the final stretch of its multi-year PoS transition. For stakeholders, this means:

• Validators: Prepare for mainnet slashing risks.

• Stakers: Monitor liquid staking options.

• Traders: Expect volatility around Merge announcements.