Ethereum Merge

53n5...V1is

12 Aug 2022

Subject :- Ethereum Merge

Since #EthMerge is big buzz on internet right now and everyone wants to know about it. Therefore, i decided to address some facts about potential Ethereum airdrop/fork that will happen during the Merge event.

Meaning

The Ethereum network, which powers the cryptocurrency Ether (ETH), is making moves to become more sustainable. It’s planning to switch from an energy-intensive proof-of-work (PoW) consensus mechanism to a more sustainable proof-of-stake (PoS) system. The Ethereum merge is the moment at which this switch will take place.

Importance

Ethereum proof-of-work consumes the same amount of energy on a yearly basis as some entire countries consume in the same time frame. Proof-of-stake is an alternative that consumes less energy. Instead of devoting electricity, which fuels computing power, users who want to be part of the verification process will put their personal cryptocurrency on the line in a process called staking. The merge will change how transactions are validated and could cut energy use by over 99%.

Tentative Date

Ethereum's website states that a final merge date is not set, though a leader on the project tweeted that Sept. 19 was the target date.

After effects of Merge

The owner of one of the biggest Chinese mining companies recently announced that he is favorable to an ETH fork, calling it ETHW (Ethereum - PoW). This fork would work similar to ETC/BCH, so the users who take on the risk of holding ETH during the merge event should be eligible.
After the merge, ETHW (ETH - PoW) and ETHS (ETH - PoS) should be available. The difference is that most likely, DeFi protocols and other Dapps will support the ETHS, continuing to develop and update in the new chain (Beacon) after the Merge, whilst the old ETHW remains as it is. Volatility is expected during the event and whilst there is no way to know how much ETHW will be worth after the fork, we are speculating the price to find equilibrium anywhere between 2-4% of the ETHS market cap.
For instance ETC, which pretty much doesn’t have an ecosystem developed, is currently around 4% of ETH’s market cap. Recently there has been rumors that stETH holders might not be eligible for the ETHW airdrop.

How to Participate

For those that have some ETH exposure and want to speculate on this upcoming airdrop, we suggest that you hold the $ETH token in the Ethereum Mainnet Wallet.