In an announcement on Twitter, they revealed that the use of cash freeze technology was intended to protect users from hackers.
Explanation of the liquidity pool freeze plan
On his Twitter account, the ETHPOW group reveals that it will freeze certain smart contracts of the loan protocol. According to them, in the first days after the fork, users’ ETHW tokens deposited in liquidity pools can be compromised. Pools like Uniswap, Aave, and Compound will have deposited ETHW tokens.
ETHW Core to Introduce Liquidity Pool Freezing Technology to Protect Users’ Assets pic.twitter.com/LTA0p8Ghm0
— EthereumPoW (ETHW) Official #ETHW #ETHPoW (@EthereumPoW) August 16, 2022
According to the group, these tokens can be exchanged by hackers for worthless USDT, USDC and WBTC. Therefore, the ETHW core makes the decision to freeze loan pool smart contracts until these companies can come up with a better solution.
They also revealed that the freeze will not be applied to staking contracts if they trade only one asset. The ETHW core also recommended users withdraw their tokens from liquidity pools such as decentralized exchanges and lending platforms.
This move drew criticism from various influential figures in the crypto community. Foobara blockchain developer and verifier, criticized the group by questioning its competence to carry out this step.
gonna be hilarious
turns out lending protocols do indeed lend out your assets
good luck getting them back https://t.co/Xy031O0gcT
— foobar (@0xfoobar) August 16, 2022
Alberto Rosas, the CEO of Gamium Corp, questioned the decentralization of the blockchain if a small group can make such important decisions. He thinks the ETHW chain will become a slow and centralized chain without any market value.
Is the Ethereum hardfork likely?
The Ethereum merger will change Ethereum’s consensus mechanism from Proof-of-work to Proof-of-stake. This will reduce Ethereum’s power consumption by more than 99%. However, it also replaces the miners currently required by the PoW system with validators.
As a result, miners could upgrade to a PoW chain like Ethereum Classic, or a hard fork of the Ethereum blockchain. However, given the strong pressure against the Ethereum hardfork, such a move is unlikely to have an impact.
To display Hide the table of contents