The founder of Tron (TRX), Justin Sun, is the newest proponent of creating an Ethereum hard fork (ETH) after the “Merge”, an update that will cause the project’s blockchain to change its proof-of-work (PoW) algorithm to a proof-of-stake, or PoS, algorithm).
The developers say Merge will make the network much cheaper, faster and greener. This move, however, will also mean the end of a revenue stream for coal miners. Ethereumwho are rewarded with tokens ETH for providing resources to block chain. In July, they produced about $620 million worth of Ether, according to data from The Block, making Merger something of a death sentence for a hefty amount of money.
All of these changes have led some prominent Chinese miners to come up with the hard fork. So even if Ethereum goes PoS and has validators (users who need to “lock” cryptos on the network to validate transactions) instead of miners (participants who need computing power to “work” on the blockchain and earn interest), miners are supporting the creation of a newly decoupled PoW version of the future PoS chain – a move that could theoretically keep their financial business intact.
“We currently have over a million ETH,” Sun said in a tweet posted on Thursday. “If the Ethereum hard fork is successful, we will give away forked #ETHW to the #ETHW community and developers to build the Ethereum ecosystem.”
The possible hard fork was called “EthereumPOW” and the network token was called “ETHW”. Poloniex, cryptocurrency exchange supported by Sun, offered support for the network, and said it would list the new cryptocurrency at bifurcation. A product for the new token will be launched in August, allowing investors to bet on the prices.
A stablecoins USDD, based on the Tron network, in which Sun has invested billions of dollars, will become the first in the EthereumPOW ecosystem, according to a tweet from project supporters posted earlier this week.
Blockchain Tron and entrepreneur Sun were contacted by CoinDeskbut did not respond until the publication of this text.
Another key hard fork proponent is Chinese miner Chandler Guo, who is believed to have played a role in the 2016 Ethereum fork that spawned Ethereum Classic (ETC). Late last month, Guo said the following on Twitter: “I forked Ethereum once, will again.”
A Twitter account of EthereumPOW supporters created a donation address earlier this week for community members to fund the development of the project.
The address received $1,400 in Ether and $400 in Tether (USDT) so far, suggesting that the community may not share the same enthusiasm for EthereumPOW as Sun and Guo.
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