Digital exchange ByBit to support post-Merge ETH POW tokens
04:29, 26 August 2022
Ethereum’s upcoming hard fork, known as The Merge, is meeting resistance from miners set to lose valuable gas fees from the switch to a proof of work system (POW) but exchanges are looking to support alternatives that emerge.
BitMEX announced recently it was preparing to support post-Merge tokens that rely on the energy intensive proof of work (ETHPoW).
The latest exchange to do so is ByBit which told Capital.com that it was important to support the industry by ensuring a successful post Merge ETH POS chain.
ETH to US dollar
“ByBit’s USDC-settled ETH options will follow our standard settlement and delivery procedure and will be based on the dollar value of the PoS token; this will cover options listed before and after The Merge, said Charmyn Ho, head of crypto insights at Bybit.
Ho, however, went onto to say that the digital asset exchange was deploying its experts to determine the viability of post-Merge ETH tokens which differ from the main chain.
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ByBit to examine post Merge ETH tokens
“In a situation where there are forked tokens, our risk management and security teams have a set of criteria in place to determine the viability of listing these tokens on our platform. Should such tokens meet these requirements, we will support their airdrop, deposit, and withdrawal,” said Ho.
The likelihood that such chains will succeed is high given the continued presence of ethereum classic (ETC) and bitcoin cash (BCH), both of which are the products of hard forks.
ETC to US dollar
Despite the willingness of exchanges such as ByBit and BitMEX to support POW ETH tokens, not all parts of the cryptocurrency market are in agreement.
Chainlink won’t support POS
Chainlink (LINK) recently announced that it would only support a POS based ETH going forward, saying in a recent blog post that it wanted to respect the wishes of the broader ethereum community.
“Users should be aware that forked versions of the Ethereum blockchain, including PoW forks, will not be supported by the Chainlink protocol.
This is aligned with both the Ethereum Foundation and broader Ethereum community’s decision, achieved via social consensus, to upgrade the Ethereum blockchain to PoS consensus,” the Chainlink blog post said.
(LINK) to USD
Miners move behind POS
At an individual level Ethereum miners may be complaining about the potential loss of gas fees but the sector’s biggest player is putting its considerable weight behind the POS switch.
Ethermine, the world’s biggest Ethereum mining pool will not support a (PoW) token following the Merge, it said in a recent announcement.
Such a move will be welcomed by both environmentalists and legislators, groups which have been vocal over the energy intensive nature of POW mining.
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