Nonprofit organization ETC Cooperative published an open letter addressed to Ethereum miners and personally to Chandler Guo, leader of activists planning Ethereum hardforward.
ETC Cooperative reports that the purpose of the letter is to keep crypto investors from losing money because of “questionable ETHPOW.” The organization agrees with Vitalik Buterin’s opinion that the fork will only bring money to very large speculative players and will create a problematic situation in the industry.
Let me outline why the Ethereum POW fork will not work and why it will be very difficult to do.
At the time of the ETH/ETC network split, maintaining ETC was the easiest thing in the world, everyone just kept mining, using the same client software. There was zero effort. All the hard coordination work was on the fork side (we’re talking about the 2017 hardforge).
This time you will need to branch out Geth (and possibly also Erigon, Besu and Nethermind). For each of these codebases, you will need to remove the POS transition logic, disable the complexity bomb, and update the network ID to provide replay protection.
The mining software will probably also have to be split/updated to provide support for a different network ID and possibly more. Unlike client code, which is publicly available and open source, many mining software is closed-source and you will need to convince its authors to make these changes and then support them.
You will need to work with wallet providers to get them to agree to support ETHW. You will also need to work with exchanges to get them to agree to support ETHW.
Once you have the client software, you will need to work with all the node operators to get their support to launch the new software.
All this coordination is very hard work and takes a lot of time….
This part of the letter deals with the objective difficulties of integrating the fork into the cryptocurrency space. However, you should agree that if the team of dissenting miners is willing to go to these difficulties, who should care but themselves. And the answer to that is present in the open letter:
All stackablecoins backed by real assets (USDT, USDC, etc.) will go to zero because the issuers only have the dollar balances they have. They will back ETH. Almost everything in Defi is built on these tokens, so almost every Defi project will be completely wiped out.
Indeed, all Ethereum-based decentralized apps have a lot of connected resources offline – sites, servers, development teams running dApps and dealing with customer service, etc. If their tokens are not zeroed out after a fork, they will not be available to most users who do not have their own nodes and depend on third-party services.
Many projects have administrator access for smart contract updates and emergency intervention. These are private keys that are kept by project managers. They won’t hand them over to people who want to run a fork of decentralized apps on the new network. This carries risks, and also reduces the value of a project that took time and money to create.
The same story is expected with NFT as with Defi, which is why the author of the letter calls to abandon the fork, apparently hinting at switching to Ethereum Classic blockchain.