Bitfinex Confirms There Are 2 ETH Tokens After The Merge

The two newly minted chain split tokens that will allow users to trade on the fork event are ETHW and ETHS, according to the latest announcement from Bitfinex.

iFinex, the firm behind Bitfinex Derivatives, announced on Tuesday the debut of a new service offering for users ahead of the much-anticipated Ethereum Merge. Ethereum Chain Split Tokens (CSTs) are now available on the exchange.

Tokens made accessible to users symbolize the two systems involved in the Merge: ETHW (proof-of-work) and ETHS (proof-of-stake). Bitfinex issued the new trading tokens so that customers may trade on the probable forking event.

The coins will be accessible via the Bitfinex derivatives platform. The chief technology officer Paolo Ardoino stated that the new tokens were created to better prepare users for any Merge-related scenarios. The tokens, however, have an expiration date of the end of the year.

According to the exchange, these tokens can help users prepare for three possible eventualities.

If there is no consensus change on the proof-of-work chain, ETHS will expire and all ETHW holdings will be converted to ETH. If the consensus adjustment is successful and no fork occurs, ETHW will expire and ETH will be exchanged for ETHS.

Both ETHW and ETHS coins will be credited with ETH if both the consensus update and the fork are successful.

The Merge, which is set to take place in mid-September, has everyone on edge. Users are waiting to see if the event will take place within the timeframe given by the creators, as well as if any disruptive side effects would arise.

The Merge has been postponed several times in the past. Protocols such as Aave encouraged network users to commit to PoS ahead of time, despite opposition from the PoW community.

Miners, in particular, must decide how to proceed with the Merge. While some large mining pools have already switched to staking, other PoW miners plan to freeze contracts in order to keep PoW alive in the face of critics.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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