When The ‘Hard Fork War’ of Ethereum is Triggered, How Do Stakeholders Conduct A Game of Interests?

MEXC has been supporting ETH2.0 merger all the time, meanwhile, MEXC announced the listing of ETHS/USDT and ETHW/USDT. As for whether ETH should be hard forked, the Ethereum community, the core projects and relevant stakeholders have made different voices.

Ethereum co-founder Vitalik Buterin said that the potential Ethereum PoW fork unlikely to gain long-term widespread adoption. Vitalik Buterin dumped all Mooney governance tokens donated by MoonDAO community after MoonDAO community proposed supporting the upcoming fork of ETHW network.

In fact, the debate on the hard fork of Ethereum is a game of stakeholders, but it has not affected the prices of ETHS and ETHW in the short term.

ETH holders on MEXC can go to the swap page to swap their ETH into two “potential forked” tokens, ETHS and ETHW at a 1:1 ratio (1 ETH= 1 ETHS+1 ETHW).The highest gain of ETHS/USDT was 462%, whereas the highest gain of ETHW/USDT was 333%.

Ethereum, the second cryptocurrency by market cap, is about to enter a new era. In September, Ethereum will complete its transition from a Proof-of-Work (PoW) consensus to a Proof-of-Stake (PoS) consensus blockchain. This event will forever change the crypto industry and the Ethereum ecosystem.

At present,the resistance voice of Ethereum fork is more. They think the Ethereum hard fork will eventually fail. The ‘fork war’ has been triggered, what do you think?

Supportive Voice

  • Tron (TRX) founder Justin Sun and his crypto exchange Poloniex were one of the first supporters of the idea.On August 7, Poloniex launched markets for potential forked tokens, ETHS and ETHW, and will airdrop to users prior to “The Merge”. Once the upgrade is completed, users will receive the tokens at a 1:1 parity with the option to trade their fork tokens for ETH before the event.
  • BitMEX wrote that there are many technical challenges that a forked version of Ethereum would face. It continued that if the positive sentiments surrounding the forked coins persist, leading centralized exchanges might list them.Meanwhile, BitMEX will allow its users to have exposure to ETHPoW through a linear futures contract margined in Tether that will go live on August 9.

Resistance Opinions

Whereas,there are also a lot resistance opinions made by different parties, especially project parties.

Ethereum co-founder Vitalik Buterin said that those who want Ethereum to remain a PoW network are those who want to make quick cash. Buterin said:“Should a fork gain traction, I’m sure there’s going to be problems… if they want to make a fork, it’s on them to mitigate those problems.”

Since the announcement date of ETH merge, the yield of ETH/USDT on MEXC was 705%.

  • Chainlink said it would not support any network that is a forked version of Ethereum. The protocol and its services will only remain operational on Ethereum during and after the merge.

“Users should be aware that forked versions of the Ethereum blockchain, including PoW forks, will not be supported by the Chainlink protocol. This is aligned with both the Ethereum Foundation and broader Ethereum community’s decision.”

Founded in 2017, Chainlink is a blockchain abstraction layer that enables universally connected smart contracts. Through a decentralized oracle network, Chainlink allows blockchains to securely interact with external data feeds, events and payment methods, providing the critical off-chain information needed by complex smart contracts to become the dominant form of digital agreement.

The Chainlink Network is driven by a large open-source community of data providers, node operators, smart contract developers, researchers, security auditors and more. The company focuses on ensuring that decentralized participation is guaranteed for all node operators and users looking to contribute to the network.

The highest yield of LINK/USDT after listing on MEXC was 3768%.

  • It is impossible for Curve DAO to force to choose one of the forks (too centralized), and a hard fork will inevitably clone the DAO and CRV, but only the chain selected by the stablecoin is feasible for Curve DAO.

Curve is a decentralized exchange for stablecoins that uses an automated market maker (AMM) to manage liquidity.Launched in January 2020, Curve is now synonymous with the decentralized finance (DeFi) phenomenon, and has seen significant growth in the second half of 2020.The project was founded by Michael Egorov, who had previous experience in the world of cryptography with NuCypher, a successful tech company that helped keep medical and financial records safe.

The highest yield of CRV/USDT after listing on MEXC was 1958%.

  • CEO of Digital Currency Group Barry Silbert said his firm does not intend to back any Ethereum hard fork.According to Silbert, ETH miners should move to Ethereum Classic (ETC) to maximize their revenue for the long term.
  • Aave thought due to the lack of oracles and liquidity issues, Aave cannot run on any PoW chain. Aave only recognizes the PoS chain as the main chain.

Aave is a decentralized finance protocol that allows people to lend and borrow crypto.Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity.

Aave (which means “ghost” in Finnish) was originally known as ETHLend when it launched in November 2017, but the rebranding to Aave happened in September 2018. (This helps explain why this token’s ticker is so different from its name!)AAVE provides holders with discounted fees on the platform, and it also serves as a governance token — giving owners a say in the future development of the protocol.

The highest yield of AAVE/USDT after listing on MEXC was 2560%.

PoW or PoS?

Proof-of-Work (PoW), the current consensus algorithm for Bitcoin, Ethereum, and other cryptocurrencies allows network participants to validate transactions. These participants or miners use computational power to compete to resolve a mathematical puzzle. The winner gets to insert a block into the blockchain and receive a reward.

This process, according to its critics, is energy demanding and allegedly unfit to onboard more users. Proof-of-Stake (PoS) is supposed to reduce network energy consumption by over 90% by using a different mechanism to validate transactions via staking. The new consensus will be followed by several upgrades and performance improvements set to take Ethereum into an era of mainstream adoption.

The merger of the ETH 2.0 will not only affect whether the network should be forked, but also the migration of PoW miners, whether ETC Classic is the best migration network, and the market’s reaction on ETH after the merger. Currently, the price of ETH has broken through 1800 USDT from 1006USDT, with the highest yield of 705%.

About MEXC

Established in April 2018, MEXC is a digital asset trading platform with over 7 million users, which offers users one-stop services, including spot, margin, leveraged ETFs, derivatives trading and staking services. The core members of the team come from international enterprises and financial companies and have experience in blockchain and financial industries.

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