Circle USDC not in support of Ethereum Proof-of-Work Fork

Stablecoin provider advocates for new chain’s development.

Yesterday we spoke on Ethereum possibly having a PoW fork after the merge. Not all platforms are in support of this theory. Circle – a stablecoin provider, is in full support of the shift from PoW to PoS or Proof-of-Stake for Ethereum. The highly anticipated merge with the Beacon chain slated for the 9th of September is expected to make changes for the blockchain as soon as it begins.

On their website Circle made an announcement  speaking on the intentions of the company when it comes to the merge and Ethereum. “ We understand the responsibility we have for the Ethereum ecosystem, businesses, developers, and end users that depend on USDC, and we intend to do the right thing.” This statement may have come about as a response to ease tensions and apprehension about crypto since the debacle of TerraUSD and the destruction caused by that fall.

Circle’s USDC currently has a market capitalization of $54.2Bn making it the second-largest stablecoin on the market.

The company is completely behind the merge event and is currently working on being able to service clients with a new system that will replace the mining-intensive Proof-of-Work system.

After the merge miners will be switched to validators that will require a stake of 32ETH to validate transactions. The merge will require a transition from inning to staking that requires customer service, business development , consistent communication with core developers, client teams, redundancy and software. Smaller miners will need to be able to keep up with all of this in order to survive the merge.

Individual miners will end up with very expensive mining hardware that is useless for staking and they will lack the capital they need to continue. The 32ETH needed to even start seeing the smallest of returns may prove to be too high for most individual miners. The company EtherMine is working on plans for onboarding their miners into the new staking platform but not every miner works with that company. 

As stated in our previous article Chandler Guo an influencer stated that the ETH fork would lead to ETHPoW and that would be a DAO. Bitmex also launched a futures contract for ETHPOW

This is not the case with Circle as the company is staying on track with the switch from PoW to PoS. “ USDC as an Ethereum asset can only exist as a single valid “version” and as stated previously, our sole plan is to fully support the upgraded Ethereum” read the announcement by the company.

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