The battle for consensus hinges on the choices made by the on-chain ecosystem.
Ethereum Fork Debate Intensifies Ahead of Merge
With Ethereum's Merge imminent, a proposed fork led by crypto influencer Guo Hongcai (aka "Baodier") has sparked controversy. The fork, dubbed EthereumPoW (ETHW), aims to preserve Proof-of-Work (PoW) mining interests, opposing Ethereum's transition to Proof-of-Stake (PoS) post-Merge.
ETHW plans to implement liquidity pool freezing technology to prevent exploitation post-fork, such as swapping invalidated assets (e.g., unsupported USDT) for ETHW tokens. Despite these measures, skepticism remains about ETHW’s viability.
Key Ecosystem Players Side with ETH-PoS
As of August 21, major Ethereum ecosystem projects have publicly supported the PoS chain, including:
- Stablecoin issuers: Tether (USDT) and Circle (USDC)
- Oracle provider: ChainLink
- DeFi protocols: Aave, Compound
- NFT projects: Yuga Labs (creators of Bored Ape Yacht Club)
Notably, PoW chain supporters are scarce, with only mining pools and Tron founder Justin Sun voicing backing. Experts predict a rapid consensus shift toward PoS, leaving ETHW’s ecosystem in disarray.
Challenges for ETHW Post-Fork
1. Asset Valuation Crisis
- Forked assets (e.g., USDT, NFTs) will exist on both chains but only PoS-backed versions retain value.
- PoW chain assets risk instant devaluation, triggering liquidity crunches and protocol failures.
2. Infrastructure Gaps
- Without mainstream oracle support (e.g., ChainLink), DeFi protocols on ETHW cannot function reliably.
- ETHW’s plan to freeze liquidity pools is a stopgap, not a long-term solution.
3. Rebuilding from Scratch
ETHW’s community claims readiness to rebuild:
- 300–500 developers allegedly onboard.
- First DEXs, lending protocols, and stablecoins targeted for late September.
Yet, competition from established L1s (Solana, Avalanche) and PoS Ethereum raises doubts about ETHW’s competitiveness due to:
- High gas fees
- Limited scalability
- Absence of existing dApp integrations
👉 Explore Ethereum's evolving landscape
FAQs: Ethereum Fork Implications
Q: Will my ETH holdings double after the fork?
A: Yes, but the value won’t. Each chain’s ETH derivatives (ETHW vs. ETHS) will trade independently, with PoS likely dominating.
Q: Can DeFi protocols operate on both chains?
A: Only if the protocol’s team actively supports both. Most major projects (e.g., Aave, Uniswap) are PoS-exclusive.
Q: Why are stablecoin issuers critical to the fork’s outcome?
A: Their choice determines which chain’s stablecoins remain pegged to fiat. PoW-chain USDT/USDC would become worthless.
Q: What’s the likelihood of ETHW surviving long-term?
A: Low. Historical precedents (e.g., Ethereum Classic) show forks struggle without broad ecosystem adoption.
👉 Stay updated on Ethereum’s Merge
Conclusion: A Fork Without a Future?
ETHW’s ideological stance for PoW faces insurmountable practical hurdles. With 99% of Ethereum’s ecosystem backing PoS, the fork’s ecosystem risks immediate collapse. As Guo Hongcai himself admitted: "There’s a 90% chance this fails." The Merge may well be Ethereum’s final consensus battle—and PoS looks set to win decisively.