One of the most anticipated events of 2022 in cryptocurrency is going to happen next week.
The Ethereum Merge is Coming!
The ETH Merge is the name of the event which is intended to transition the Ethereum blockchain from its current Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) model, which should be faster and more energy efficient.
On August 10, 2022, Ethereum completed the Goerli public testnet merge — its final trial before making the migration from Proof-of-Work (PoW) to Proof-of-Stake (PoS) on the mainnet.
The ETH Merge will reduce its annual ETH issuance from 4.3% to 0.43%. This is due to the efficiency improvements provided by the PoS consensus mechanism. PoS provides a high level of blockchain security at a lower cost, so it pays less for network security.
In total, switching to PoS reduces issuance by more than 90%.
What does the Merge mean for FMFW.io users?
FMFW.io will support the PoS fork if it survives. The final decision will be made after the fork.
Spot trading will not be affected.
ETH Merge is expected to happen sometime between September 10th and 20th (when ETH reaches TTD 58750000000000000000000), it will lead to the end of the proof-of-work (PoW) consensus mechanism in favor of proof-of-stake (PoS). The ETH and all ERC20 tokens deposits and withdrawals will be closed slightly before the merge and will be opened after the merge. The ticker ETH on FMFW.io will belong to the ETH PoS.
We expect all tokens listed on FMFW.io to remain on the PoS chain or explicitly announce the move somewhere. Right now we are not aware of any tokens listed on FMFW.io that decided to support the PoW chain.
The perpetual futures won’t be affected. We won’t halt or settle ETH's future contract.
We cannot guarantee anything about the downtime of ETH and ERC-20 tokens. We will try to minimize it if it exists.
If there will be airdrops and the birth of new ETH currencies, we won’t support them until further notice.
Staking functionality won’t be affected.
Please note opening of new ETH short positions will be limited between Sep. 14 2022 and Sep. 15 2022.
Swaps USDT ERC20 to/from USDT Omni/TRC20 will not be affected.
If you have any questions remaining feel free to reach out to our support team.