Ethereum miners to freeze liquidity pool after hard fork

More reactions have come from the crypto industry with the upcoming Ethereum upgrade, Merge. The upgrade is expected to transition the Ethereum blockchain from using the Proof-of-Work (PoW) consensus mechanism to Proof-of-Stake (PoS).

This transition will change the transaction validation process from mining to staking. Therefore, many people get different ideas about what to expect during and after the transition.

While there is a waiting period for the merger, many have expressed concern over some potential hard forks. In addition, the Ethereum network still has some miners operating on the system, which creates more tension within and outside the community.

With the completion of the merger, the miners were able to move over to Ethereum Classic, which still functions as a PoW. But if they continue to work on the Ethereum blockchain, they would split the chain hard.

In a recent report, some Ethereum miners have declared a liquidity pool freezing technology. This came mainly from the ETHPOW group. This group of miners plans to hard fork the Ethereum blockchain after the transition.

Ethereum gets 2% growth on the chart. Source: ETHUSDT on TradingView

The ETHPOW group has posted on its Twitter platform the plan to freeze some lending protocols and smart contracts.

In addition, the group revealed that there would be a compromise with customers’ ETHW tokens deposited in different liquidity pools. Some listed pools that may be affected include Aave, Compound and Uniswap.

With its plan, the group revealed that the freezing action would not include any betting contract dealing with a single asset. However, the ETHW core advises customers to remove their deposits from all liquidity pools. This mainly applies to lending platforms and decentralized exchanges.

In its explanation, the group stated that its action is to ensure users’ protection against hackers and fraudsters. It mentioned that hackers and other bad actors could easily exchange the staked tokens for less valued WBTC, USDT and USDC. It has therefore decided to freeze smart contracts for lending pools pending a better solution from the platforms.

Reactions to Ethereum Miners Plan

Following the Ethereum miners’ post, several people criticized the move. Most crypto big shots and influencers are not left out in the reactions. However, a developer and blockchain auditor, Foobar, questions the group’s capacity to carry out their ridiculous plan.

Also, the CEO of Gamium Corp, Alberto Rosas, doubts the decentralization of the Ethereum blockchain. He claimed that this move is big for a small group to pull off. For him, the ETHW chain may end up as a slow centralized chain with no market value.

It is quite clear that the Ethereum miners are pushing the entire ecosystem with their freezing plans.

Featured image from Pixabay, Chart from TradingView.com

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