Ethereum

EthereumPoW Wants To Freeze User Assets After The Merge

EthereumPoW is being widely propagated by a group of anonymous miners with the desire to fork successfully after The Merge.

Ethereum is finally set to transition to Proof-of-Stake (PoS) between September 15-16, which will phase out ETH mining by Proof-of-Work (PoW) using specialized devices, and will instead be staking ETH.

The problem, however, is that PoW advocates, especially miners, have decided to keep the PoW chain alive for their benefit.

The ETH mining sector is worth $19 billion, according to estimates from crypto analytics firm Messari. With billions of dollars worth of infrastructure, miners of course have to prioritize a hard fork because mining other PoW tokens like Ethereum Classic (ETC) or Bitcoin (BTC) will not be as profitable. So the EthereumPoW (ETHW) project was born, declaring the changes that would apply if the chain splits.

As of August 16, the ETHW team has continued to strengthen their belief in the possibility of a fork following The Merge by recommending that ETH holders withdraw their assets from liquidity providers (LPs) on the market. industry-leading DeFi platforms including Uniswap, Sushiswap, Aave, and Compound.

Besides, the project also said that it will temporarily freeze ETHW tokens in certain LPs and lending protocols after the hardfork to protect users’ assets.

The idea from the ETHW side received criticism soon after. The community protested that freezing user assets without their consent would be tantamount to ETHW going against the decentralized nature of the project’s original statement.

There is even an account that comments ETHW is just a scam and asks the community to report this on Twitter.

The PoW Ethereum hard fork has received the backing of a well-known Chinese miner Chandler Guo as well as the man who claims to be behind the 51% attack on the Ethereum Classic.

Vitalik Buterin, the co-founder of Ethereum, has also criticized the PoW fork, calling it an act of selfishness by a few outsiders. He advised miners to switch to ETC as well.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.