ETHW Project Analysis-CoinW Institute

3 min readSep 19, 2022

ETHW Project Analysis

1. Short comments from the Institute

This merger of Ether is actually a hard fork from the technical point of view. After the successful fork, the consensus mechanism of Ether will shift from proof of workload (PoW) to proof of interest (pledge) (PoS), but there are different voices in the community about Ether’s shift to PoS mechanism, especially the miners’ group, thus resulting in this hard fork. At present, most of the core developers and mainstream applications in the ethereum ecosystem do not support fork projects such as ETHW, but many large mining pools are already expected to support ETHW out of their desire to retain miners, such as F2Pool, Poolin and BTC.com. In the short term, ETHW has gained some ecological support and users holding ETH can receive “candy” more easily; from the price point of view, ETHW is undoubtedly facing huge selling pressure in the short term, and the price is in the bottoming out stage. In the long run, whether ETHW price can achieve sustainable growth depends mainly on the public chain ecology and community construction.

2. Recent breaking point

Ether merger, ETH hard fork

3. Project Introduction

ETHW is a hard fork project in the process of Ether merger, ETHW insists on PoW as the consensus mechanism and airdrops ETHW 1:1 to all ETH holders in the fork process. the initial version of ETHW CORE mainly includes three aspects: 1. disable the difficulty bomb; 2. EIP1559 change: the base fee is changed to a multi-signature wallet jointly managed by miners and the community; 3. adjust the ETHW’s starting mining difficulty. In addition, the initial version of ETHW Core released the chain ID number, ETHW main chain is №10001, ETHW test network is №10002 and 10005 respectively.

4. Token role

ETHW is the project token of ETH PoW network, mainly used as the blockchain reward for miners, and can be used as the network’s Gas fee, etc.

5. Token Distribution

ETHW is a 1:1 airdrop of project tokens to ETH holders.

6.Investment Institution

Anonymous team, investment institution unknown

7. Project Outlook

Whether ETHW is suitable for long-term holding or not depends on its future ecological construction and community development. From the current situation, although ETHW has united some developers, mainstream DeFi and NFT projects, etc. do not support ETHW, and mainstream stable coins such as USDT and USDC do not support ETHW, which means that projects on ETH PoW lack anchors and infrastructure to anchor value, and ETHW faces very serious development difficulties in the short term. In addition, if the ecological construction is slow, miners will start to lose profit, which will further reduce the value of ETHW, thus making the whole ecology shrink and gradually enter a “spiral downward death cycle”. For investors, the overall advice is to be cautious.