Poloniex to Support Potential PoW Ethereum Forks

Cryptocurrency exchange Poloniex will support a potential fork of Ethereum on the Proof-of-Work (PoW) algorithm after the merge of the main onenetwork with Beacon Chain, which is scheduled for September 2022.

"Poloniex was the first exchange to list Ethereum, and now it's the first to supportthe proposed forking of the network with the listing of two potential fork tokens – ETHS and ETHW," the statement said. 

According to a press release, on August 8, the platformwill launch an interface for exchanging ETH for ETH/ETHW. Potential fork tokens (potential forked tokens) will also be allowed to be exchanged in pairs with each other. The offer will be valid until the update is activated on the main Ethereum network.

Deposits and withdrawals in ETHS and ETHW will not be available.De facto, tokens are digital options on the native assets of one of the chains. 

The company stressed that over time"adapts the offer to the latest market trends". Representatives of the exchange also noted that it is still unknown what the hard fork will look like in the Ethereum network.

At the end of July, a Chinese miner and supporterEthereum Classic Chandler Goh announced that he is recruiting a group of developers to support the Ethereum fork on PoW after The Merge. The latter involves the transition of the network to the Proof-of-Stake consensus algorithm.

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

The community estimates the likelihood of a fork after the Ethereum network upgrade quite highly.According to a Twitter survey by hedge fund Galois Capital, a third of respondents believe that a PoW-based ETH1 blockchain will emerge as part of the process. 

Tron founder and Poloniex owner Justin Sunsaid that there are more than 1 million ETH on the balance of the exchange. If the fork is successful, it will donate some of the PoW-based tokens to “the ETHW community and developers to build the Ethereum ecosystem.”

According to Sun, the PoW mechanism is "a key driver of the growth of the Ethereum ecosystem," so Poloniex and he personally are ready to support the community. 

Recall that by August 12, Ethereum developers will transfer the Goerli testnet to the PoS algorithm. 

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