EthereumPoW (ETHW), a forked network of Ethereum, announced yesterday its decision to dissolve the 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 Price Plunge
What is ETHW?
Why Did EthereumPoW Hard Fork Happen?
EthereumPoW, a hard-forked network of Ethereum, released a statement titled “ETHW Core Team Dissolution” last night (19th). The statement stated that after verifying the feasibility of ETHW operating independently without the support of the core team, the decision was made 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. Dissolve the ETHW core team to achieve complete autonomy.
2. Uphold PoW (Proof of Work) as the underlying consensus mechanism of the chain and provide long-term maintenance.
3. Embrace decentralized autonomy and make ETHW a public chain without a central authority.
At the same time, ETHW also mentioned that its existing servers will be temporarily transferred to OneDao for transitional maintenance until a long-term ecological partner is determined.
ETHW Price Plunge
Although embracing decentralized autonomy is a good thing, the departure of the core team also means that the future development and upgrade of ETHW may be more challenging. Influenced by this information, ETHW quickly fell after the announcement, with a reported price of $2.62 at the time of writing, indicating a 7.5% decline 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 protect its network. The PoW mechanism involves solving complex mathematical problems to create new blockchain blocks. This process allows Ethereum nodes (distributed computers) to reach consensus on transaction requests and prevent manipulation.
However, with the merge upgrade, Ethereum chose to transition from PoW to Proof of Stake (PoS) mechanism on September 15, 2022.
Further reading:
ETHW Fork Update: Market Cap Plunges, Miners Depart… What Remains to Stay Afloat?
Why Did EthereumPoW Hard Fork Happen?
The occurrence of the EthereumPoW hard fork is due to some miners unwilling to give up the lucrative PoW mechanism in exchange for lower profits with PoS. According to Arcane Research, Ethereum mining revenue reached $18 billion in 2021, slightly higher than Bitcoin’s $17 billion return.
In the 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 protect the network without the need for mining equipment.
Although PoS can reduce energy consumption by 99.9% and eliminate the high entry barrier for miners, PoW still has its advantages in terms of security and decentralization discussions.
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