There have been several reactions from the crypto industry to the upcoming Ethereum upgrade, the merge. The upgrade is expected to switch the Ethereum blockchain from using the Proof-of-Work (PoW) consensus mechanism to Proof-of-Stake (PoS).
This transition would change transaction validation processing from mining to staking. As a result, many people have different ideas about what to expect during and after the transition.
While there is a wait for the merger, many have raised concerns about some possible hard forks. Additionally, the Ethereum network still has some miners operating in the system, causing more tensions inside and outside the community.
With the merger complete, miners could switch to Ethereum Classic, which still acts as a PoW. But if they continued to work on the Ethereum blockchain, they would fork the chain hard.
In a recent report, some Ethereum miners have announced technology to freeze liquidity pools. This came mainly from the ETHPOW group. This group of miners plan to hard fork the Ethereum blockchain after its transition.
On the chart, Ethereum is registering a 2% growth. Source: ETHUSDT on TradingView
The ETHPOW group has published on its Twitter platform the plan to freeze some lending protocols and smart contracts.
Furthermore, the group announced that there would be a compromise of customers’ ETHW tokens deposited in different liquidity pools. Listed pools that could be affected include Aave, Compound, and Uniswap.
With its plan, the group announced that its freeze measure would not include a stake contract related to an individual asset. However, the ETHW core advises customers to remove their deposits from all liquidity pools. This mainly affects credit platforms and decentralized exchanges.
In its statement, the group stated that its goal is to ensure user protection from hackers and scammers. It mentioned that hackers and other malicious actors could easily exchange the escrowed tokens for less valuable WBTC, USDT, and USDC. Hence, it was decided to freeze loan pool smart contracts until there is a better solution from the platforms.
Reactions to the Ethereum Miners plan
After the Ethereum miners’ contribution, several people criticized the move. Most crypto big shots and influencers are not left out in the reactions. However, Foobar, a developer and blockchain reviewer, questions the group’s ability to carry out their ridiculous plan.
The CEO of Gamium Corp, Alberto Rosas, also doubts the decentralization of the Ethereum blockchain. He emphasized that for a small group, this step is huge. For him, the ETHW chain could end up as a slow, centralized chain with no market value.
It is quite obvious that the Ethereum miners are putting pressure on the entire ecosystem with their freezing plans.
Featured image from Pixabay, chart from TradingView.com
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