After several delays, the planned Ethereum merger (The Merge) is expected to take place in Q3/Q4 2022. However, along with the merger came the intensifying call for a hard fork.
At present, some exchanges and project parties have made their own choices and expressed their opinions on the hard fork of Ethereum. Is it hype or belief, is it an excuse to protect users or cut leeks… Encryption users still need to distinguish.
Stablecoin of the supporter
On August 9, Tether, the issuer of USDT, officially confirmed its support for Ethereum’s upcoming merger upgrade and switch to a blockchain based on the PoS consensus mechanism. And said that it will pay close attention to the relevant progress and preparations, and will support PoS Ethereum in accordance with the official schedule. Tether believes that the transition to POS should not be weaponized to cause confusion and harm within the ecosystem. A smooth transition of ETH is critical to the long-term health of the DeFi ecosystem and its platforms, including those using Tether.
On August 9, Circle announced that it will only support the Ethereum PoS chain after the Ethereum merger is completed. It is expected that the on-chain functions or fully automatic issuance and redemption services of USDC will not be interrupted.
Circle said that Circle’s test environment is connected to the Goerli Ethereum testnet and will be closely watching its merger with Prater in the coming days. While Circle does not speculate on the possibility of a fork after the Ethereum mainnet merge, USDC as an Ethereum asset can only exist as a valid “version”, and as mentioned, Circle’s only plan is to fully support the upgraded Ethereum PoS chain.
On August 4, Sam Kazemian, co-founder of the algorithmic stablecoin Frax Finance, proposed to support FRAX redemption only on PoSETH, not on any PoW alternative fork (ETHPoW), after Ethereum switches from PoW to PoS.
Exchange of Supporting Parties
On August 9, FTX stated that it has no plans to suspend or settle ETH futures before the merger, and will do its best to support its subsequent transactions. Ethereum futures and perpetual contracts (ETH-0930, ETH-1230, ETH-PERP) on FTX will track the Proof of Stake Ethereum network after the merger.
On August 9, Bitfinex issued an announcement that clearly expressed support for the Ethereum merger. Bitifnex said it does not plan to suspend any trading activity during this upgrade. In addition, trading of ETH/USDt, ETH/BTC and ETH/EURt perpetual contracts will continue as usual and follow the PoS consensus mechanism after implementation.
It will be derisive
Crypto derivatives exchange Deribit recently issued a policy announcement on the merged hard fork of Ethereum, saying that Deribit settlement of all instruments will be carried out on the chain supported by the ETH Foundation (ie PoS or ETH2). If the value of the forked tokens is greater than 0.25% of the ETH PoS and the new chain is stable and functioning properly, Deribit will provide these forked tokens to users. However, if there are new tokens, the new tokens are also not considered as margin.
On August 8, OKX CEO Jay Hao said on social media that OKX is actively following and supporting the merger of Ethereum. There may be a hard fork of Ethereum in this network upgrade, and OKX will evaluate and launch the hard fork token based on demand.
On August 9, the one-stop DeFi wallet DeBank stated on its official Twitter that the hard fork would bring huge disasters to the entire Web3 ecosystem. As such, DeBank and all products will not support any forked chains during the transition to Ethereum’s PoS merger, including Web3 user platform DeBankDeFi, non-custodial wallet Rabby, and Web3 developer service DeBank Open API.
On August 8, smart contract wallet Argent officially stated that it has recently received some questions about a potential PoW fork after the merger. Argent is very excited about the Ethereum merger, especially since it saved 99% of energy consumption. Argent said it has no plans to support any forks.
On August 9th, the Aave community released a technical analysis to explain why the upcoming Ethereum PoS merger (The Merge) will not affect Aave’s system, for the Aave community’s proposed “New Proposal: Only the Merged PoS Chain” provide support. From a technical and operational perspective, the smart contracts related to the liquidity protocol will not be affected after the merger, and Aave will only be slightly affected by the duration of the on-chain governance mechanism and the Aave user interface. The analysis also pointed out that due to the lack of oracles and related liquidity issues, Aave cannot run on any PoW chain. Aave only recognizes the PoS chain as the main chain. If any user decides to directly interact with Aave smart contracts on any fork , it is their responsibility.
On August 8, the oracle protocol Chainlink issued a document on its official website stating that during and after the merger of Ethereum, the Chainlink protocol and its services will continue to run on Ethereum and do not support forks of the Ethereum network, including PoW forks. , which is consistent with the decision of the Ethereum community.
For Ethereum developers and DApp teams who are uncertain about their migration strategy around the merger event, it is recommended to suspend smart contract operations to avoid unforeseen events and help protect users.
On August 9, NFTScan officially announced that during the Ethereum merger, the NFTScan browser and OPEN API service will continue to run on Ethereum, and will not support the PoW fork of the Ethereum network. As a Web3 data infrastructure, NFTScan will be consistent with the Ethereum developer community, continue to provide developers with professional NFT API services, and provide blockchain users with convenient NFT data search and query services.
Investors of the Supporting Party
On August 8, DCG CEO Barry Silbert said in a discussion on the Ethereum fork event on his social network, “We fully support Ethereum PoS, and do not support any Ethereum PoW.”
Gate.io is one of the exchanges that currently publicly supports the Ethereum fork. A few days ago, Gate.io issued an announcement saying that from August 9th to the successful upgrade of ETH2.0, the function of ETH to ETHS or ETHW will be opened, and users can exchange ETH to ETHS or ETHW at a ratio of 1:1. Among them, ETHS represents the token of the new PoS (Proof of Stake) chain; the forked coin ‘candy’ ETHW represents the token of the PoW (Proof of Work) chain that may continue to exist.
At the same time, Gate.io announced, “If the hard fork fails, ETHS will be automatically converted into upgraded ETH in a 1:1 ratio. At the same time, all trading markets related to ETHS and ETHW will be delisted.”
On August 8th, BitForex will fully support the potential hard fork of Ethereum with a responsible attitude towards user assets. If the hard fork is successful, BitForex will support Ethereum holders to obtain airdrops.
On August 5, MEXC issued an announcement saying that it will support the upgrade of Ethereum and its potential hard fork. If successful, two parallel blockchains can be created after the upgrade. After the upgrade is complete, all ETH holders on MEXC will receive the forked assets in a 1:1 ratio.
On August 4, Poloniex, the TRON encrypted trading platform, announced that it will support the ETH 2.0 upgrade and potential forks, and will launch two potential forked futures tokens and related trading markets on August 8. Poloniex reserves the right to revise or change this announcement (such as delisting relevant trading pairs in advance) to adapt to the latest market trends.
BitMEX did not make a clear statement on the Ethereum fork, but soon launched the ETHPOW futures product. On August 8, BitMEX announced that it will launch the ETHPoW futures contract ETHPOWZ22 on the 9th, with USDT (ERC-20) as the margin, and the maximum leverage is 2 times. It is reported that the ETHPOWZ22 futures contract has been launched.
In addition, on the official website of EthereumPow, a forked chain supported by Bao Erye, we also found the presence of mining pools such as Hiveon, Flexpool, 2Miners, F2pool, and Poolin. Among them, 2Miners has made it clear that choosing PoS instead of PoW is the biggest mistake of Ethereum in a public article in June this year.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/support-or-opposition-two-sides-of-the-ethereum-merger/
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