Today, September 15, 2022, the much anticipated Ethereum merge upgrade was released. Here are some questions crypto enthusiasts can ask about the overblown update.
Ethereum merge FAQs: Money
Above all, Ethereum’s transition to PoS consensus will lead to dramatic changes in the ETH economy. Therefore, it will also affect the entire global DeFi ecosystem to some extent.
I held Ethereum before the merge, what should I do?
In general, you do not need to do anything. Centralized and decentralized wallets, lenders, stake tables, DeFi and NFT protocols will continue the Ethereum merge operations. No special action is required from investors, traders, shareholders, lenders or borrowers.
we merged! pic.twitter.com/5wyOMZokam
— banteg (@bantg) September 15, 2022
Also, there is no such thing as an “Ethereum 2.0” token or an “Ethereum on PoS” token. Any such “airdrop” or token sale is a dangerous scam.
Will Ethereum (ETH) price increase after Merge?
Nobody knows. Ethereum (ETH) is in the limelight of crypto enthusiasts. Therefore, the price is expected to rise in the short term. However, major investors bought large amounts of Ethereum, anticipating the rise. They can start sales at any time. This is why some seasoned traders stay away from taking positions as ETH can witness tremendous volatility.
What about my locked ETHs in DeFi protocols?
Ethereum’s merge activation will not affect APY rates, stake reward rates, or other details of passive income strategies in large DeFi. At the same time, as we mentioned above, the Ethereum (ETH) price could be very volatile in the next few days. This fact should be considered when creating a staked/locked token portfolio.
Will Ethereum (ETH) be deflationary after Merge?
In short yes, it will most likely be a deflationary cryptocurrency with negative issuance. However, the effects of such a change will not be immediately apparent. Therefore, this shift should not be seen as a strong short-term catalyst for Ethereum price in Q4 2022.
What about the ETHW airdrop? When it will be?
According to a statement by key contributors of Ethereum on PoW (ETHW), the network will launch on the mainnet 24 hours after the upgrade. Therefore, the tokens can be distributed on September 16, 2022.
Ethereum merge: Technology
Also, the merge activation is the most radical change in the technological design of Ethereum since its mainnet release in 2015.
What does “merge” actually mean for Ethereum (ETH)?
With “Merge”, Ethereans can create new blocks, transactions, accounts, etc. In terms of the (transaction layer), it refers to the procedure of “merging” with its mainnet. Overall, merge has created a mix of pre-made elements to launch an entirely new Blockchain that retains some of Ethereum’s rules and features.
What should Ethereum (ETH) miners do after the merge?
The most important part of Merge is that it puts an end to Ethereum mining. From September 15, 2022, Ethereum stakers will be responsible for maintaining network integrity and adding new blocks to the chain. Ethereum (ETH) miners can move the hash rate of their hardware to alternative cryptocurrencies based on the Ethash algorithm. Another option can support Ethereum in the PoW (ETHW) initiative.
What is Ethereum in PoW? Is this project legal?
Ethereum on PoW (ETHW) was launched in 2016 by veteran miner Changler Guo, who was among the key figures of Ethereum Classic (ETC). The Ethereum (ETHW) hard fork on PoW is already supported by a number of major services, including Binance, Poloniex, and FTX. However, the mainnet launch plan has been met with criticism, while the core team remains anonymous.
Will mining ETHW be as profitable as pre-merge ETH mining?
No one can predict the ETHW price dynamics after the merge. Since the tokens will be distributed for free, some large holders may easily leave later. Therefore, mining rewards will be insignificant. However, as with the “retro airdrops” craze of 2021-2022, their behavior is unpredictable, even by top analysts.
What cryptocurrencies can Ethereum miners mine?
Pre-Merge Ethereum (ETH) emerged following the Ethash algorithm. The largest Ethash coins are Ethereum Classic (ETC), Ravencoin (RVN) and Ergo (ERG). Following the exit of Ethereum (ETH) miners, almost all of them witnessed the rapid flow of hash power.
cryptocoin.comWe have conveyed the expectations of the experts from merge in this article.
