Ethereum miners, most notably the ETHPOW group, have announced a liquidity pool freezing technology. ETHPOW is the group of Ethereum miners who have vowed to harden the chain after the merger.

In a Twitter announcement, they reveal that the use of liquidity pool freezing technology was to protect the users from hackers.

Liquidity pool freezing plan explained

On their Twitter account, the ETHPOW group reveals that they are going to freeze some protocol lending smart contracts. According to them, in the first days after the fork, users’ ETHW tokens deposited in liquidity pools could be compromised. Pools like Uniswap, Aave and Compound will have deposited ETHW tokens.

According to the group, these tokens can be swapped by hackers and scientists with worthless USDT, USDC and WBTC. Therefore, the ETHW core is making the decision to freeze smart contracts from loan pools until those companies can come up with a better solution.

They also revealed that the freeze will not be applied to staking contracts if they are only dealing with a single asset. The ETHW core has also recommended that users remove their tokens from liquidity pools such as decentralized exchanges and lending platforms.

This move has been criticized by several influential figures in the crypto community. Foobar, a developer and blockchain auditor, has ridiculed the group by questioning their competence to successfully execute this move.

Alberto Rosas, the CEO of Gamium Corp, has questioned blockchain decentralization whether a small group can make such big decisions. He believes the ETHW chain will become a slow, centralized chain without any market value.

Is the Ethereum Hardfork Likely?

The Ethereum merger will change Ethereum’s consensus mechanism from Proof-of-work to Proof-of-stake. This will reduce Ethereum’s power consumption by more than 99%. However, it also replaces the miners currently required by the PoW system with validators.

As a result, the miners can switch to a PoW chain like Ethereum Classic, or hard fork the Ethereum blockchain. However, with a lot of pressure piling up against Ethereum hard fork, such a move is unlikely to gain traction.

Nidhish is a technology enthusiast whose goal is to find elegant technical solutions to solve some of society’s biggest problems. He is a big proponent of decentralization and wants to work on the mainstream adoption of Blockchain. He also likes almost all popular sports and likes to talk about a wide variety of topics.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.

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