Cryptocurrency exchange Poloniex will support a potential Ethereum fork on the Proof-of-Work (PoW) algorithm after the merger of the leading network with Beacon Chain, scheduled for September 2022.
“Poloniex was the first exchange to list Ethereum, and now it is the first to support a proposed network fork with a listing of two potential fork tokens, ETHS and ETHW,” the statement said.
According to a press release, on August 8, the platform will launch an interface for exchanging ETH for ETH/ETHW. Potential fork tokens (potential forked tokens) will also be allowed to be exchanged in pairs. The offer will be valid until the update is activated on the leading Ethereum network.
Deposits and withdrawals in ETHS and ETHW will not be available. De facto tokens are digital options on native assets of one of the chains.
The company emphasized that over time, “adapts the offer to the latest market trends.” Representatives of the exchange also noted that it is still unknown what the hard fork will look like in the Ethereum network.
At the end of July, Chinese miner and supporter of Ethereum Classic Chandler Guo announced that he was recruiting a group of developers to support the Ethereum fork on PoW after The Merge. The latter involves the transition of the network to the Proof-of-Stake consensus algorithm.
The community appreciates the likelihood of a fork after upgrading the Ethereum network. According to a Twitter poll by a hedge fund, Galois Capital, a third of respondents believe that the process will see the ETH1 blockchain based on PoW.
Tron founder and Poloniex owner Justin Sun revealed that the exchange has more than 1 million ETH on its balance sheet. If the fork is successful, it will donate some PoW-based tokens to “the ETHW community and developers to build the Ethereum ecosystem.”
According to Sun, the PoW mechanism is “a key factor in the growth of the Ethereum ecosystem,” which is why he and Poloniex are personally ready to support the community.