The Ethereum Proof of Work (ETHW) fork network announced yesterday that it has decided to dissolve its core team, and its existing servers will be temporarily transferred to OneDao for transitional maintenance until a long-term ecological partner is determined.
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Existing servers transferred to OneDao for maintenance
ETHW price plunges
What is ETHW?
Why did the Ethereum Proof of Work hard fork occur?)
The Ethereum Proof of Work (ETHW) hard fork network released a statement yesterday evening, titled “ETHW Core Team Dissolution Statement,” stating that after verifying the feasibility of ETHW running independently without the support of a core team, it has decided to dissolve the ETHW Core Team:
Existing servers transferred to OneDao for maintenance
In the statement, ETHW stated that it has reached the following consensus:
– Dissolve the ETHW Core Team to achieve complete autonomy
– Maintain PoW (Proof of Work) as the underlying consensus mechanism in the chain in the long term
– Embrace decentralized autonomy to make ETHW a public chain without a governing body
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 price plunges
Although embracing decentralized autonomy is a good thing, the departure of the core team also means that the future development and upgrades of ETHW may be more difficult. Influenced by this information, ETHW quickly fell after the announcement, reaching $2.62 at the time of submission, still down 7.5% in the past 24 hours.
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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, allowing Ethereum nodes (distributed computers) to reach consensus on transaction requests and prevent manipulation.
However, with the upcoming upgrade “The Merge,” Ethereum chose to transition from PoW to Proof of Stake (PoS) mechanism on September 15, 2022.
Further reading:
ETHW Fork Situation: Market Cap Plunges, Miners Flee… What’s Left to Survive?
Why did the Ethereum Proof of Work hard fork occur?
The occurrence of the Ethereum Proof of Work hard fork is due to some miners who do not want to give up the lucrative 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 the PoW network, miners are responsible for confirming transactions and competing with each other to solve mathematical problems. On the other hand, in the PoS network, there is no need to perform complex computational tasks. Instead, investors stake their tokens to protect the network without the need for mining equipment.
Although PoS can reduce 99.9% of energy consumption, and stakers do not face the high threshold of mining, PoW still has its advantages in terms of security and decentralization.
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