VERSE PRESS

Crypto News, Global First.

Ethereum Opens Final Testnet Before Historic Proof-of-Stake Switch

The Ethereum Foundation launched the Kiln testnet on March 14, 2022, giving developers worldwide their last dedicated rehearsal environment before the network's long-anticipated switch from energy-intensive proof-of-work mining to proof-of-stake validation.

|

The testnet arrived at a pivotal moment for the global Ethereum ecosystem. After more than a year of parallel development on the Beacon Chain, Ethereum's proof-of-stake layer, core developers were ready to test the full transition at scale in a controlled setting before touching the public testnets and, eventually, mainnet. The Ethereum Foundation called Kiln the final purpose-built merge testnet and urged all developers to run complete deployment cycles before the upgrade reached production networks. The Foundation's announcement post stated directly: "We strongly recommend that developers run through a full testing & deployment cycle on Kiln and report any issues with tools or dependencies to those projects' maintainers."

Approximately 24 hours after Kiln launched, the simulated merge executed on March 15, 2022. The network finalized, but not without some friction. Tim Beiko, a core Ethereum developer, noted at the time: "We finalized, but it seems there is a client who isn't producing blocks consistently. The network is stable, with more than two-thirds of validators correctly finalizing. We're looking into the issue." Kiln carried roughly 110,000 active validators and 3.5 million ETH staked. Over the testnet's lifespan, it processed about 1.3 million transactions at an average of 8,000 per day before being deprecated on September 26, 2022.

Kiln's predecessor, the Kintsugi testnet, had exposed serious problems in late 2021. A critical bug, identified by developer Marius van der Wijden, caused the network to split twice when different client software disagreed on block validity. The mechanism involved manipulating block hash references, causing Geth to reject blocks that Nethermind and Besu had accepted. That incident underscored why Ethereum needs multiple independent client implementations running simultaneously: one execution-layer client handling transactions and state, paired with one consensus-layer client managing block finalization. The two communicate through an authenticated local API called the Engine API. Kiln was built specifically to give the broader developer community, not just core teams, a stable environment to test this dual-client setup before it went live at scale. Beiko described the design intent plainly: "A week or so from launch to merge was definitely the intention... [to] give the community the opportunity to test their products through the merge."

For developers and investors in Sub-Saharan Africa, the Kiln launch carried a specific message: the window for GPU mining on Ethereum was closing. Nigeria, Ghana, and other markets with growing informal mining ecosystems had seen participation despite persistent obstacles, with cities such as Lagos and Accra serving as notable hubs for this activity. Electricity supply is unreliable across much of the continent, and grid power is expensive where it is available. Those operational costs made proof-of-work participation difficult even before the transition. The shift to proof-of-stake removes the specialized hardware requirement. Participating in network security under the new system requires staking 32 ETH rather than running power-hungry mining rigs. That is a meaningful shift in accessibility, even if the capital requirement remains high for most retail participants. At the time of the Merge, no African-native exchange had launched pooled staking; platforms serving Africa for staking were Binance, Coinbase, and Kraken, all foreign-headquartered. Africa recorded $100.6 billion in on-chain crypto volume between July 2021 and June 2022, representing 2 percent of global activity, with 95 percent of transactions in retail-sized amounts under $10,000. The region's crypto usage skews toward peer-to-peer transfers and remittances rather than DeFi, but Nigerian and Kenyan developers have increasingly deployed on Ethereum infrastructure, making the Kiln testing window relevant for teams building stablecoin and payment applications on the continent.

In India, the Kiln launch landed during a sharp regulatory shift. The Union Budget of February 2022 introduced a 30 percent flat tax on crypto profits and a 1 percent tax deducted at source on all transactions, effective July 2022. India ranks among the top countries globally by number of Ethereum developers. The proof-of-stake transition would convert ETH from an asset requiring mining infrastructure into one that generates yield through staking. Pre-merge projections placed staking returns at roughly 3.65 to 5.2 percent annually, with post-Merge yields projected to potentially reach 15 percent once the transition completed. For Indian retail ETH holders, that yield picture was attractive in principle, but a critical caveat applied: at the time of the Merge, staking withdrawals were not enabled and were deferred to the subsequent Shanghai upgrade, meaning any ETH staked during this period had no confirmed timeline for redemption. In practice, the 30 percent rate on staking rewards and the transaction-level tax would significantly reduce real returns for anyone filing taxes in India.

The Kiln testnet itself was deprecated after the mainnet Merge completed on September 15, 2022, cutting Ethereum's annualized electricity consumption by roughly 99.988 percent and bringing network usage from approximately 94 terawatt-hours per year down to a fraction of that figure. Separately, the Merge reduced Ethereum's carbon footprint from roughly 11,016,000 tonnes of CO2 equivalent annually to approximately 870 tonnes CO2e. For the regions Verse Press covers, the energy story matters less than what the transition changed about access: staking replaced mining as the mechanism for participating in Ethereum's security, and that shift removed the hardware and electricity barriers that had kept many users on the sidelines.