In a recent development within the Ethereum community, concerns have been raised about the transition from proof-of-work (PoW) to proof-of-stake (PoS). Amanda Cassatt, CEO of Serotonin, a web3 marketing studio, shared insights on Twitter, reflecting the discontent among Ethereum proponents regarding the network’s current direction. Cassatt clarified that these comments reflected broader community discussions rather than her personal views.
Vitalik Buterin, the co-creator of Ethereum, engaged in the discourse, addressing the disadvantages of the PoW model that conflicted with Ethereum’s long-term objectives. He emphasized the necessity for the switch to PoS, aligning better with the network’s future vision.
Ethereum, since its launch in July 2015, operated on a PoW consensus mechanism, akin to Bitcoin. This model centered around miners who played a crucial role in securing the network and facilitating the introduction of new ETH tokens into circulation. The landscape, however, transformed significantly following “The Merge” in September 2022. This pivotal update transitioned Ethereum to a PoS system, where miners were replaced by stakers, marking a major technological shift.
The change led to a division among Ethereum supporters. Some voiced concerns over the alteration of Ethereum’s core principles. In response, a faction led by Chinese miner Chandler Guo even attempted to sustain a PoW version of Ethereum. Although they initially maintained a dedicated core team, the group eventually shifted to a fully autonomous model. Despite these efforts, the project saw limited success, with its ETHW cryptocurrency trading below $4 as per the latest data from CoinMarketCap.
Conversely, Ethereum’s primary PoS chain has witnessed a surge in validator participation and staking interest. Reports from Crypto.news in February highlighted that over a quarter of Ethereum’s circulating supply is now staked, securing the network and generating returns for its participants. Buterin has proposed several initiatives aimed at further decentralizing the staking process and refining Ethereum’s PoS model, indicating ongoing developments to enhance network efficiency and inclusivity.