In a pivotal development, the foundational group steering Ethereum’s proof-of-work (PoW) core has opted for dissolution. The proclamation on December 19 outlined the disbandment of the EthereumPoW development nucleus, a move aimed at attaining absolute self-sufficiency. Subsequently, the EthereumPoW blockchain is slated to persist, with PoW as its primary consensus mechanism and decentralized governance ushering in an era of deity-less public chainhood.
Simultaneously, the custody of current EthereumPoW servers is set to transition to OneDAO, an autonomous protocol embedded within the Harmony network, ensuring interim maintenance until enduring ecological alliances materialize. Jadal Page, a luminary in Ethereum PoW’s core development, articulated the decision, stating, “We have scrutinized and authenticated the viability of ETHW’s autonomous operation, substantiating the fundamental technical and operational prerequisites for ETHW in such a contingency.”
The EthereumPoW blockchain had undergone a hard fork, separating from the Ethereum mainnet just before the completion of the Ethereum Merge upgrade in September 2022. The upgrade marked a shift from PoW to a proof-of-stake (PoS) consensus mechanism, precipitating a 99% reduction in the mainnet’s energy consumption.
Discontent brewed among developers dissatisfied with the burgeoning centralization accompanying the new Ethereum PoS consensus. Concurrently, miners found themselves aggrieved by the precipitous loss of mining revenue. In response, EthereumPoW emerged as a bastion safeguarding the ethos of the original Ethereum.
However, the situation took a turn on September 20, as Grayscale Investments, a major exchange-traded fund operator, withdrew its support for post-Merge Ethereum PoW tokens (ETHW). The rationale behind the decision cited the absence of “meaningful liquidity” for ETHW, coupled with a lack of support from the products’ custodian. Consequently, Grayscale found itself unable to execute trades involving ETHW tokens for its clientele.
Furthermore, ETHW tokens, which had achieved a pinnacle value of $100 in August 2022 upon their initial release, now languish at $2.59. The total market capitalization of these tokens presently hovers at $279 million.
