Ethereum Merge and Potential Fork Tokens
With Ethereum's highly anticipated Merge upgrade scheduled for September 2022, discussions about a potential Proof-of-Work (PoW) fork have gained momentum among mining communities. In response:
Poloniex became the first major exchange to list two speculative fork tokens:
- ETHS (ETH2): Represents the post-Merge Proof-of-Stake (PoS) chain
- ETHW (ETH1): Represents the potential PoW fork chain
- Token Distribution: ETH holders on Poloniex can convert their assets 1:1 into both tokens
- Trading Pairs: Available for ETHS/ETH, ETHS/USDT, ETHS/USDD and ETHW/ETH, ETHW/USDT, ETHW/USDD
Exchange Conversion Rules
Poloniex outlined three possible scenarios:
Successful Merge with Fork Occurring:
- ETHS converts to upgraded ETH (PoS)
- ETHW follows the dominant PoW chain
- Additional forks may be supported based on community consensus
Merge Without Fork (PoS Prevails):
- ETHS automatically converts to upgraded ETH
- Both ETHS and ETHW markets will be delisted
Fork Event:
- All ETH holders will receive 1:1 allocations of new forked assets
Market Reaction and Risks
Current Prices (as of press time):
- ETHS/ETH: 0.928620
- ETHW/ETH: 0.069875
👉 Track real-time ETH fork token prices
- Risk Disclaimer: Poloniex emphasized these are high-risk speculative assets with no value guarantees
Impact on Curve Finance's stETH/ETH Pool
The fork speculation has accelerated imbalances in Curve's stETH/ETH liquidity pool:
- Current Ratio: 1 stETH = 0.9627 ETH
Pool Composition:
- ETH: 197,308.39 (23.93%)
- stETH: 627,160.22 (76.07%)
Key observations:
- Increased stETH redemptions to ETH
- Some users positioning for potential airdrops
- Higher volatility expected as Merge approaches
FAQs About Ethereum's Potential Fork
Q: When will the Ethereum Merge happen?
A: Currently scheduled for September 2022, though exact dates may change based on network readiness.
Q: How can I claim potential fork tokens?
A: Holding ETH in a self-custody wallet during the Merge is currently the safest method. Exchange distributions vary by platform.
Q: What happens to my stETH if a fork occurs?
A: The official Lido protocol will only support the PoS chain. Forked stETH versions may emerge but carry significant risks.
Q: Are fork tokens a good investment?
A: These are highly speculative assets with uncertain value propositions. Always conduct thorough research before trading.
👉 Learn about Ethereum upgrade risks
Market conditions are changing rapidly—this developing story will be updated as new information emerges.