Tron (TRX) founder Justin Sun announced that he will support a hard fork event that will split the network in two after Ethereum (ETH) moves to the Proof of Stake (PoS) mechanism. Leading Ethereum's move from Prof of Work (PoW) to Prof of Stake (PoS) has been dubbed "Merge" in the cryptocurrency ecosystem.
The developers say that abandoning the Proof of Work (PoW) system would make the network much cheaper, faster and more environmentally friendly. This will also mean the end of the revenue stream for Ethereum (ETH) miners who are rewarded with Ethereum (ETH) tokens for funding the blockchain. According to the data, miners generated over $620 million in Ethereum (ETH) in July alone, making Merge a sort of disaster for a significant amount of cash.
This has prompted some leading Chinese miners to propose a hard fork so that even if Ethereum (ETH) goes through Merge and is approved by stakers, miners will continue to support the newly dedicated Proof of Work (PoW) version of the chain. In theory, such an event could keep miners' financial activities intact. Tron founder Justin Sun expressed his support in his tweet:
"We currently have more than 1 million #ETH. If #Ethereum hard fork succeeds, we will donate some forked #ETHW to #ETHW community and developers to build #ethereum ecosystem."
Cryptocurrency exchange Poloniex, led by Tron (TRX) founder Justin Sun, has offered support for the Ethereum fork, currently called EthereumPOW. The exchange will list both Ethereum (ETH) and the forked token currently called ETHW. A futures product for the new token will be released in August, allowing investors to trade on prices. The Tron-based stablecoin USDD, in which Sun has invested billions, will be “the first stablecoin in the EthereumPOW ecosystem,” according to a Tweet.