March 28, 2024

Frax Finance team proposes abandoning PoW-based Ethereum forks

Frax Finance team proposes abandoning PoW-based Ethereum forks

The core team of Frax Finance platform developers invited the community to refuse the launchalgorithmic stablecoin FRAX in potential forks of the Ethereum network based on the Proof-of-Work (PoW) algorithm.

The author of the FIP-101 proposal was project co-founder Sam Kazemian. The initiative involves FRAX redemption exclusively on the Ethereum 2.0 network based on the Proof-of-Stake (PoS) algorithm.

“FRAX is the fifth largest stablecoin in the market,it accounts for over 20% of the TVL of the Curve platform, is a Uniswap top 10 token, and is a critical part of the Ethereum ecosystem. As such, it makes sense to clearly and publicly communicate the desire of FXS holders through a governance mechanism,” Kazemian wrote.

If the offer is accepted, FRAX DAO will convertall assets of a potential PoW network (subject to their significant value) into the PoW version of ETH. The funds will be deposited into the project treasury to meet the requirements for the redemption of stablecoins.

The Ethereum mainnet is scheduled to merge with Beacon Chain in September 2022, but the timing of the update may change depending on the cumulative difficulty.

The Merge: what to expect from the biggest update of Ethereum


Let us remind you that the Poloniex cryptocurrency exchange announced support for potential Ethereum forks based on PoW.

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