As the highly anticipated Ethereum “merger” approaches, many companies have gone public with their support for the upgrade. Among them is now Uniswap Labs.
“Uniswap Labs looks forward to the merger. It is an important step in scaling Web3 and immediately reduces the environmental impact of Ethereum,” a Uniswap Labs spokesperson said. Fortune. “During this transition, users should know that the Uniswap protocol and web application will continue to operate seamlessly.”
Being the largest decentralized exchange on Ethereum, the Uniswap protocol is noncustodial, permissionless, and self-executing through the use of smart contracts or collections of code that run on the blockchain. But Uniswap Labs is the studio largely behind the development of its protocol, and its endorsement of the post-merger Ethereum proof-of-stake chain is significant.
The merger will move Ethereum from a proof-of-work consensus mechanism to a proof-of-stake. This means that mining on Ethereum will be eliminated and a network of validators will verify transactions.
Although most members of the Ethereum community are excited about the merger, as it would reduce Ethereum’s ecological footprint by 99% or more, miners, unsurprisingly, are not happy, as they will lose their source of income. . Many have invested tens of thousands of dollars in mining equipment.
A cohort of miners are even planning a post-merger Ethereum hard fork, to create what they call “ETHPoW”, in an effort to pursue a proof-of-work chain that allows them to continue generating revenue. If a fork occurs after the merge, projects will need to determine which chain – proof-of-stake or proof-of-work miners – retains its value.
With big names like Uniswap Labs and recently stablecoin giants like Circle and Tether supporting the post-merger Ethereum proof-of-stake chain, attempts to create a successful forked chain have diminished, especially more than decentralized finance (DeFi) protocols provide much of the total value locked on Ethereum.
The possibility of ETHPoW has sparked conversation on crypto Twitter – even Ethereum creator Vitalik Buterin acknowledged this earlier this month at a press conference, noting that “if a fork of evidence becomes important, so there are certainly many applications that will choose one path or the other.
However, Buterin said he was not worried about a hurtful Ethereum fork and merger, adding that most major apps have shown support for proof-of-stake, and those pushing for a fork don’t. are that “a few foreigners who basically trade, and most just want to make a quick buck.
And the majority of the crypto community agrees. “No one in the ETH community, other than miners, wants to stay on proof-of-work,” said Hasu, Flashbots Strategy Lead and Research Fellow at Paradigm. tweeted in early August. “This chain of forks will be a giant trap for retail. Miners, exchanges, traders are all trying to talk about it for their own self-interest reasons.
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