LCX to Support Ethereum Proof-of-Stake (POS) and Proof-of-Work (PoW)
por LCX Team · September 6, 2022
In anticipation of the upcoming Ethereum Mainnet Merge expected between the 10th and 20th September 2022. LCX is planning to focus on Ethereum Proof-of-Stake (PoS), but plans to also support Ethereum Proof-of-Work (PoW) in case an active fork is established.
Important Note:
Your assets will remain safe, as always, and no action is required on your part. There will be no need to convert your existing ETH into anything else before, during, or after the Merge. We will handle everything for you.
LCX’s exchange and trading will be fully operational during the Merge. The Merge only impacts ETH and ERC20 tokens, all other non-ethereum tokens, like Cardano, Celo, and Bitcoin are not impacted.
Deposits and Withdrawals
LCX will be suspending ETH and ERC-20 deposits and withdrawals a few hours before the time of the merge. ETH and ERC-20 deposits and withdrawals will be resumed once the network has stabilized.
Trading During the Merge
LCX anticipates no disruption to trading during the upcoming Ethereum Merge. You can trade any ETH trading pair. Your ETH balance will be converted into ETH PoS. But please keep in mind that there may be more volatility than usual during this time and that this can affect liquidity.
ETH – After the Merge
Scenario 1:
If the Ethereum Merge is uncontested, and no new token is created, LCX will aim to resume deposit and withdrawal services as soon as the network stabilizes.
Scenario 2:
The chain splits into two competing chains, creating a new token. The $ETH ticker symbol will be used for the Ethereum PoS chain. LCX will airdrop the new forked token $ETHW (or other designated ticker symbol) to our users based on the snapshot of ETH balances at the end of the day prior to the Paris execution layer upgrade (approximately at ETH mainnet block height of 15,540,293) and will support withdrawals for the forked token. The airdrop will happen at a later stage based on the above mentioned snapshot. Any potential new token listing for trading on LCX will be reviewed and is not guaranteed.
ERC20 Tokens – After the Merge
In Scenario 1 all ERC20 tokens will be visible in your wallet as usual. Deposits and withdrawals will resume as soon as the network stabilizes.
In case of Scenario 2 and depending on the Ethereum Proof-of-Work community ERC20 tokens might also be forked and airdropped to the users. LCX will decide wether or not to support airdrop, deposit and withdrawals of the new forked ERC20 tokens. If there is demand from our community and from the market, we would prepare the technical steps for this. In such a Scenario we would add the same ERC20 token balance in Ethereum PoS and Ethereum PoW chain, e.g. ABC Token will there be available on both chains with $ABC (Ethereum PoS) and $ABCW (Ethereum PoW).
LCX’s Merge Plan:
- We will stop the deposits and withdrawals of ETH and ERC20 tokens for a few hours on the merge date.
- We will take a snapshot of your ETH and ERC20 token balances when the deposit of ETH and ERC20 token will be stopped.
- We keep the ETH ticker for $ETH (PoS) and ETHPoW with the symbol $ETHW.
- You will see your $ETH balance continuously. Your ETH balance will be ETH PoS. But we will airdrop the new $ETHW balance to all users based on the ETH that was there in the snapshot.
Please contact us if you have any other questions on the forthcoming Ethereum Merge. You can reach us at support@LCX.com
Disclaimer: This content contains forward-looking statements that involve inherent risks and uncertainties, and we might not be able to achieve the predictions, forecasts, projections and other outcomes we describe or imply in forward-looking statements. A number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates, and intentions we express in these forward-looking statements and in other public filings and press releases. We may not achieve all of the expected benefits of our strategic initiatives and partnerships. Factors beyond our control, including but not limited to the market and economic conditions, changes in laws, rules or regulations and other market challenges, could limit our ability to achieve some or all of the expected benefits of these initiatives. This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to lose.