Ethereum miners to freeze liquidity pool after hard fork

Ethereum miners to freeze liquidity pool after hard fork

Ethereum miners to freeze liquidity pool after hard fork

Several reactions came from the crypto industry with the next Ethereum update, the merger. The upgrade is expected to shift the Ethereum blockchain from using the Proof-of-Work (PoW) consensus mechanism to Proof-of-Stake (PoS).

This transition would change transaction validation processing from mining to staking. Therefore, many people have different ideas about what to expect during and after the transition.

Although there is a waiting period for the merge, many have expressed concerns about some potential hard forks. Additionally, the Ethereum network still has miners operating on the system, creating more tension inside and outside the community.

With the completion of the merger, miners could switch to Ethereum Classic, which still functions as a PoW. But if they continued to work on the Ethereum blockchain, they would hard fork the chain.

In a recent report, some Ethereum miners have declared technology to freeze liquidity pools. This was mainly from the ETHPOW group. This group of miners plans to hard fork the Ethereum blockchain after its transition.

Ethereum miners to freeze liquidity pool after hard fork
Ethereum gains 2% growth on the chart. Source: ETHUSDT on TradingView

The ETHPOW group has published on its Twitter platform the plan to freeze certain loan protocols and smart contracts.

Additionally, the group revealed that there would be a compromise of customers’ ETHW tokens deposited in different liquidity pools. Some listed pools that could be affected include Aave, Compound, and Uniswap.

Along with its plan, the group revealed that its freeze action would not include any single-asset staking contracts. However, the ETHW core advises customers to withdraw their deposits from all liquidity pools. This mainly concerns lending platforms and decentralized exchanges.

In its explanation, the group specifies that its action is to ensure the protection of users against hackers and fraudsters. He mentioned that hackers and other malicious actors could easily exchange the deposited tokens with lower valued WBTC, USDT and USDC. Therefore, he decided to freeze the loan pools smart contracts pending a better solution from the platforms.

Reactions to Ethereum miners plan

Following the message from Ethereum miners, several people criticized this decision. Most crypto bigwigs and influencers are no slouch in the reactions. However, a blockchain developer and auditor, Foobar, questions the group’s ability to pull off their ridiculous plan.

Also, the CEO of Gamium Corp, Alberto Rosas, doubts the decentralization of the Ethereum blockchain. He argued that this move is huge for a small group to accomplish. For him, the ETHW chain can end up as a slow centralized chain with no market value.

It is quite evident that Ethereum miners are putting pressure on the entire ecosystem with their freezing plans.

Featured image from Pixabay, Chart from TradingView.com

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