Exchange Poloniex announced about the release of two versions of ETH tokens, which may appear after the Ethereum hard fork. The platform team believes that after the Merge of the network (the Merge) in September, 2 parallel blockchains may arise. To reduce the risks associated with volatility during the upgrade and protect users’ assets, the exchange has offered its customers a new product. RBC Crypto.
The ETHS token will represent a version of the new PoS (proof-of-stake) chain, while the ETHW token will represent the PoW (proof-of-work) chain, which may continue to exist after the Merge. From August 8, ETH holders on Poloniex can exchange their Ethereum for any of the two tokens, ETHS and ETHW, at a 1:1 ratio.
In the event that two blockchains are formed, the exchange will support the holders of both tokens: ETHS will be converted to a new version of ETH, and ETHW will continue to exist, possibly under a different name that the community will choose.
If the ETH 2.0 update is completed without a fork of the blockchain, then the cryptocurrency will retain the former ETH designation. In this case, Poloniex will suspend and delist ETHS, ETHW and related markets, and ETHS will be converted to upgraded ETH.
The transition of Ethereum from PoW to PoS is gradually approaching completion. The last Goerli testnet should make the switch around August 11th. If all goes well, the Ethereum mainnet upgrade will be scheduled around September 19th.
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