Ethereum Classic (ETC) rose over 150% in July, making it one of the best performing digital assets of the month.
The asset was trading at $36.50 at press time after losing more than 11% in the past 24 hours.
— Noelle Acheson (@NoelleInMadrid) July 29, 2022
Ethereum will no longer be mineable once its transition to a proof-of-stake network is complete. Validators will use existing ETH to validate blocks which will create new ETH and produce staking rewards after the merger.
Meanwhile, ETC is a rigid version of Ethereum after the 2016 DAO hack.
Miners could switch to Ethereum Classic
Several experts revealed that miners leaving Ethereum could find a new home in Ethereum Classic as the sister blockchain is supposed to be compatible with Ethereum mining equipment.
Ethereum co-founder Vitalik Buterin first shared the possibility for miners to migrate to Ethereum Classic at a recent event in Paris.
Buterin would have Told developers and users are unsure about the merge back to the Ethereum Classic chain. He said:
It is a very welcoming community. If you like proof of work, you should use Ethereum Classic, it’s a totally thin chain.
Sami Kasab of Messari said that ETC was the only proof-of-work digital asset that the ETH ASIC machine could mine.
According to Kasab:
“The Ethereum mining network is made up of two types of hardware: ASICs and GPUs. The problem with ASICs is that they cannot be reused for applications other than ETH mining. Ethereum Classic is the only other PoW coin that can be mined with an ETH ASIC, as its hashing algorithm is compatible with the algorithm of ETH.
Meanwhile, Bitmain’s mining pool AntPool has shown its support for Ethereum Classic by investing $10 million in the ecosystem.
Let’s support the ETC ecosystem and incubate high-quality PoW projects together！ https://t.co/AHft6WfGES
— ANTPOOL (@AntPoolofficial) July 27, 2022
Miners could revolt
Miners could continue to mine the proof-of-work version of Ethereum after the merger is complete.
A Galois Capital survey found that 33% of respondents believe the merger would create two parallel networks in ETH1 (PoW) and ETH2 (POS).
Question 1: What happens during the merger? If Choice 2 or 3, proceed to Questions 2-5.
— Galois Capital (@Galois_Capital) July 27, 2022
Discussions about this have swirled, with Chandler Guo leading the discussion on Ethereum PoW forking.
ETH will be a fork, ETHPOS VS ETHPOW https://t.co/ICti7ou4q6
— ChandlerGuo (@ChandlerGuo) July 27, 2022