Crypto News- On December 19th, the team behind the Ethereum proof-of-work (PoW) hard fork made a significant announcement. They’ve decided to disband the core development team of EthereumPoW, aiming to achieve full autonomy for the blockchain. Despite this dissolution, EthereumPoW will persist with PoW as its primary consensus mechanism, relying on decentralized governance to transform into a deity-less public chain.
Ethereum Core Development Team Disbands
In the transition process, the existing EthereumPoW servers will be handed over to OneDAO, a decentralized protocol on the Harmony network. OneDAO will temporarily manage the EthereumPoW blockchain until long-term ecological partners are identified.
Jadal Page, a core developer of Ethereum PoW, expressed that they’ve thoroughly examined and confirmed the feasibility of ETHW operating independently without core support. This decision comes after the hard fork of the EthereumPoW blockchain from the Ethereum mainnet, just before the completion of the Ethereum Merge upgrade in September 2022. The Ethereum Merge marked a shift from PoW to a proof-of-stake (PoS) consensus mechanism, resulting in a significant reduction in mainnet energy usage.
EthereumPoW Team Dissolves: Challenges and Decline of ETHW Tokens
The creation of EthereumPoW originated from developers’ dissatisfaction with the heightened centralization linked to the new Ethereum PoS consensus. Additionally, miners voiced concerns about the loss of mining revenue, leading to the establishment of EthereumPoW with the aim of preserving the original Ethereum.
However, the project encountered hurdles, and on September 20, Grayscale Investments, an exchange-traded fund operator, decided to withdraw support for post-Merge Ethereum PoW tokens (ETHW). Grayscale cited the lack of meaningful liquidity and the custodian’s non-support for such tokens as reasons for the decision. Consequently, the value of ETHW tokens, which initially reached an all-time high of $100 in August 2022, has seen a substantial decline, currently standing at $2.59, with a total market capitalization of $279 million.
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