March 27, 2024
EthereumPoW Team Disbands Amidst Challenges
Altcoins News

EthereumPoW Team Disbands Amidst Challenges

In a significant development within the Ethereum community, the developers behind the Ethereum proof-of-work (PoW) hard fork have announced their decision to disband. The core EthereumPoW development team will dissolve to achieve “full autonomy,” as stated in the announcement on December 19. Despite the disbandment, the EthereumPoW blockchain will persist with PoW as its primary consensus mechanism, and decentralized governance will guide its path towards becoming a deity-less public chain.

As part of the transition, existing EthereumPoW servers will be handed over to OneDAO, a decentralized protocol on the Harmony network. OneDAO will take on the responsibility of transitional maintenance until long-term ecological partners are identified for ongoing support. Jadal Page, the core developer of Ethereum PoW, emphasized the team’s exploration and validation of the feasibility of EthereumPoW operating independently, confirming the technical and operational conditions for such autonomy.

EthereumPoW emerged as a hard fork from the Ethereum mainnet just before the completion of the Ethereum Merge upgrade in September 2022. The Ethereum Merge marked the transition of the network from PoW to a proof-of-stake (PoS) consensus mechanism, drastically reducing mainnet energy consumption by 99%. The creation of EthereumPoW was fueled by the dissatisfaction of developers with the perceived increased centralization introduced by the new Ethereum PoS consensus. Miners upset over the loss of mining revenue, sought to preserve the original Ethereum through the creation of EthereumPoW.

However, challenges arose for EthereumPoW as ETF operator Grayscale Investments decided to withdraw support for post-Merge Ethereum PoW tokens (ETHW) on September 20. Grayscale justified its decision by highlighting the lack of meaningful liquidity in ETHW and the absence of support for such tokens from the custodian. Consequently, Grayscale could not fulfil its rights to buy and sell ETHW tokens for its clients.

The market performance of ETHW tokens also experienced a downturn, reaching an all-time high of $100 in August 2022 upon launch but subsequently dropping to $2.59. The total market capitalization of ETHW currently stands at $279 million.

The disbandment of the EthereumPoW development team and the challenges faced by EthereumPoW highlight the complexities and evolving landscape of blockchain and cryptocurrency projects, especially in the context of contentious hard forks and shifts in consensus mechanisms. The future trajectory of EthereumPoW remains uncertain, awaiting further developments and potential partnerships within the blockchain ecosystem.

Image: Wallpapers.com

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