Ethereum PoW (ETHW), the Ethereum fork network, announced yesterday that it has decided to dissolve its core team and temporarily transfer its existing servers to OneDao for transitional maintenance until a long-term ecological partner is determined.
(Table of Contents:
Transfer of existing servers to OneDao for maintenance
ETHW token price plunges
What is ETHW?
Why did Ethereum PoW undergo a hard fork?)
Ethereum PoW (ETHW), the Ethereum hard fork network, released a statement yesterday evening titled “ETHW Core Team Dissolution Announcement,” stating that after verifying the feasibility of ETHW operating independently without the support of the Core team, it has decided to dissolve the ETHW Core team.
Transfer of existing servers to OneDao for maintenance
In the statement, ETHW stated that it has reached the following consensus:
1. Dissolution of the ETHW Core team to achieve complete autonomy.
2. Persist with Proof-of-Work (PoW) as the underlying consensus mechanism and maintain it in the long term.
3. Embrace decentralized autonomy to make ETHW a permissionless public chain.
At the same time, ETHW also pointed out that its existing servers will be temporarily transferred to OneDao for transitional maintenance until a long-term ecological partner is determined.
ETHW token price plunges
While embracing greater decentralization and autonomy is a good thing, the departure of the core team also implies that the future development and upgrades of ETHW may become more challenging. Influenced by this information, ETHW quickly declined after the announcement, with a reported price of $2.62 at the time of writing, a 7.5% decrease in the past 24 hours.
(Image source: CoinGecko)
What is ETHW?
Since its launch on July 30, 2015, Ethereum (ETH) has been using the Proof-of-Work (PoW) consensus mechanism to secure its network. The PoW mechanism involves solving complex mathematical problems to create new blockchain blocks, allowing Ethereum nodes (distributed computers) to reach consensus on transaction requests and prevent manipulation.
However, with the upcoming upgrade called “The Merge,” Ethereum has chosen to transition from PoW to Proof-of-Stake (PoS) mechanism starting on September 15, 2022.
Further reading:
ETHW Fork Status: Market Capitalization Plunges, Miners Flee… What’s Left to Sustain?
Why did Ethereum PoW undergo a hard fork?
The hard fork of Ethereum PoW occurred because some miners did not want to give up the lucrative profits from the PoW mechanism in exchange for lower profits from PoS. According to Arcane Research, Ethereum mining revenue reached $18 billion in 2021, slightly higher than Bitcoin’s $17 billion return.
In a PoW network, miners are responsible for confirming transactions and competing with each other to solve mathematical problems. On the other hand, in a PoS network, complex computational problems are not required, and instead, investors stake their tokens to secure the network without the need for mining equipment.
While PoS can reduce energy consumption by 99.9% and eliminate the high entry barriers for miners, PoW still has its advantages in terms of security and decentralization.
(Related articles:
Guide: How to View Your ETHW Fork Coins on Metamask? Exchange Support (Binance, FTX, etc.)
Ethereum Officially Enters the PoS Era, MEXC Becomes the First Exchange to Support “ETHW Fork Coin Deposits”
ETHW Announcement: “Mainnet Deployment within 24 Hours after the Merge Ends,” Community Outrage: No Release of Source Code for Pool Testing?)
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ETH
ETHW
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Ethereum fork network
Proof-of-Work mechanism