Ethereum is expected to launch the Merge upgrade 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 upgrade 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 upgrade is complete, all current Ethereum (ETH) holders on Poloniex will automatically receive an equal amount of the newly distributed assets.
Poloniex is going to list two “potentially forked” versions of Ethereum and their accompanying markets to protect its consumers from the dangers associated with the market volatility that will occur during the hard fork. Ahead of the launch of the official ETH 2.0 upgrade, ETH holders on Poloniex have the opportunity to convert their ETH holdings into one of two “possible forked” tokens, ETHS or ETHW, in a 1:1 ratio at to go to the exchange page. In addition, users are allowed to convert their ETHS and ETHW holdings to ETH at the same exchange rate before the update.
With the details listed 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) will start on August 8, 2022 at 04:00 UTC until the ETH 2.0 upgrade.
- The exchange (ETHS/ETHW to ETH) will start on August 8, 2022 at 04:00 UTC until the ETH 2.0 upgrade.
- Besides ETHS/ETH and ETHW/ETH, other market pairs may be launched in the future.
- Trading starts on 8 August 2022 at 12:00 (UTC).
- ETHS and ETHW deposits and withdrawals will no longer be possible.
Full Poloniex Plans for Ethereum Hard Fork Tokens
Prior to the upgrade, Poloniex will take a snapshot of all ETHS balances on its platform. ETHS will be immediately upgraded to the upgraded ETH at a 1:1 ratio and the ETHS market will be delisted if the ETH 2.0 upgrade results in more than one chain. After the completion of the hard fork, the main chain of ETHW will be the PoW chain that currently has the highest hash rate. Poloniex will also support any alternative proof-of-work chains that arise as a result of the fork, and will fully respect community preferences regarding token naming. Over time, Poloniex will make the necessary adjustments to the token’s name in accordance with the final community consensus and re-enable the token’s ability to be deposited, withdrawn and traded.
The ETH token will be retained even though the ETH 2.0 upgrade is completed without a fork and Ethereum switches from proof-of-work to proof-of-stake. In this scenario, Poloniex will suspend and remove ETHS, ETHW and related marketplaces. Additionally, 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 has made the decision to take the action described above after reviewing the latest market data and taking into account the general consensus of the community. The exchange will also continue to do everything to ensure market stability. Additional information will be provided in future announcements. Please note that Poloniex reserves the right to change or modify this statement to adapt to the latest market developments (for example, by removing the affected trading pairs in advance).
Trading or investing in “possibly forked” tokens carries a significant level of risk due to the fact that there are still many unanswered questions regarding the ETH hard fork. It is possible that this potential fork will not succeed because there is not enough hashrate or because there is not enough support from developers or community members. If this happens, the tokens will either lose all their value or Poloniex will delist them. Please be careful before making any decisions regarding “potentially forked” coins, as Poloniex cannot guarantee their value.