Ethereum is expected to launch the Merge update to ETH 2.0 in September 2022. Poloniex, which was the first exchange in the world to accept both Ethereum and Ethereum Classic, has announced that it will provide full support for the next Ethereum update, as well as any potential hard forks. . If completed successfully, the merger will result in the creation of two parallel blockchains after the upgrade. Once the update is complete, all current Ethereum (ETH) holders on Poloniex automatically manage an equal amount of the new bifurcated assets.
Poloniex will list two “potentially bifurcated” versions of Ethereum and related markets to protect its consumers from the dangers posed by the proposed market building during the hard fork. Prior to the launch of the official ETH 2.0 update, ETH holders on Poloniex have the option to convert their ETH holdings into one of two “possible fork” tokens, ETH or ETHW, in a 1: 1 ratio by going to the page exchange. Also, users can convert their holdings to ETH and ETHW to ETH at the same exchange rate before the upgrade.
With the necessary details below, Poloniex will open the corresponding markets:
- The ETHS coin symbolizes the new Proof of Stake (PoS) chain.
- ETHW is the PoW (Proof of Work) chain token that may continue to exist in the future.
- The exchange (ETH to ETHS / ETHW) starts August 8, 2022 at 04:00 UTC until the ETH 2.0 update.
- The exchange (ETHS / ETHW in ETH) starts on August 8, 2022 at 04:00 UTC until the ETH 2.0 update.
- In addition to ETHS / ETH and ETHW / ETH, other market pairs may be added in the future.
- Trading will start on August 8, 2022 at 12:00 (UTC).
- ETHS and ETHW deposits and withdrawals will no longer be possible.
Complete Poloniex plans for Ethereum hard fork tokens
Prior to the update, Poloniex will take a snapshot of all ETHS sales on its platform. ETHS will be immediately upgraded to the upgraded ETH in a 1: 1 ratio and the ETHS market will be removed if the ETH 2.0 upgrade results in more than one chain. After the completion of the hard fork, ETHW’s main chain will be the PoW chain which currently has the highest hashrate. Poloniex will also support any alternative proof-of-work chain that will emerge as a result of the fork and will fully respect the community’s preferences regarding token naming. In due course, Poloniex will make the necessary changes to the token name in accordance with the final community consent and reactivate the ability of the token to be deposited, withdrawn and exchanged.
The ETH symbol will be retained even if the ETH 2.0 update is successfully completed without a fork and Ethereum goes from proof-of-work to proof-of-stake. In this scenario, Poloniex will suspend and remove ETHS, ETHW and related markets. Additionally, the ETHS will be converted to the latest version of ETH. Poloniex advises participants to exercise caution given the inherent risks. Users can follow upcoming Poloniex announcements for snapshot and airdrop information.
Prioritize market stability and security
Poloniex decided to take the action described above after reviewing the most recent market data and considering the general consensus of the community. The exchange also undertakes to make every effort to ensure market stability. Further information will be provided in future announcements. Please note that Poloniex reserves the right to modify or alter this statement to adapt to the most recent market developments (for example, by removing affected trading pairs in advance).
Trading or investing in “possibly fork” tokens carries a significant level of risk due to the fact that there are still many unanswered questions about ETH’s hard fork. It is possible that this potential fork will not be successful because there is not enough hashrate or because there is not enough support from developers or community members. If this happens, the tokens will lose all their value or Poloniex will remove them from the list. Please exercise caution before making any decisions regarding “potentially bifurcated” coins, as Poloniex cannot guarantee their value.