Ethereum holders are eagerly waiting for the Merge that is scheduled for September 13, 2022. The Ethereum Merge will affect the Ether holders since price volatility is expected to grow as speculations for a possible price increase continues to engulf the entire market.
Nevertheless, ETH holders need to be wholly prepared for the Merge that will see the Ethereum transition from the Proof of Work consensus mechanism to the Proof of Stake. The upgrade from PoW to PoS will mean that ETH miners will no longer mine, and as a result, ETH miners are forking ETH to keep a PoW version of the token to support continued mining.
In that context, ETH PoW tokens will soon get airdropped to ETH holders, and here are some of the ways one can use them as the Ethereum Merge nears.
Crucial Methods For ETH Holders Ahead Of The Ethereum Merge
To benefit from the much-awaited Ethereum Merge and get the ETH PoW token, you need to have total control of your ETH tokens. Full custody of your tokens on a hardware wallet that underpins the forking will give you full control of the forked tokens. Although you may get the forked tokens in case you are holding your ETH on an exchange, your crypto exchange might or might not credit your wallet.
Moreover, unwrap all the wETH tokens. The primary idea is to maintain total interaction with the Ethereum mainnet. By unwrapping these tokens, you get to interact with the ETH mainnet, and to can receive the ETH PoW tokens after the Merge.
Equally, you need to get rid of all the liquidity from all DeFi protocols. Any Ethereum being used to provide liquidity services on all DeFi platforms will not be eligible for the airdrop. To get the ETH PoW tokens, you need to withdraw all Ethereum used for liquidity. A perfect strategy here would be to withdraw and become eligible for the airdrop and later recommit the Ethereum tokens for liquidity after the Merge.
Furthermore, it is critical to bridge the ETH tokens to the ETH mainnet. Having Ethereum tokens locked up on Layer 2 scaling solutions like Avalanche, Polygon, or Optimism will not earn you ETH PoW tokens. It is better to transfer all the ETH tokens back to the mainnet ahead of the Merge to get the ETH PoW tokens.
Buy Bitcoin NowWhat To Expect After The Merge
The Merge marks an important stage in the growth and evolution of crypto. Ethereum network is home to many altcoins, and these changes mostly affect the performance of the tokens and ETH’s price. Positioning yourself to get the airdropped ETH PoW tokens is beneficial if you still want to interact with the ETH PoW fork.
Nonetheless, it is critical to note that interacting with the ETH PoW is quite risky and may result in losses after the Merge. Other potential risks might include replay attacks and the possibility of ERC 20 tokens on the PoW chain losing their value unless the people will continue using the ETH PoW chain.
The Takeaway
The Merge is expected to happen several days from today, and Ethereum holders need to prepare enough for it. Those who are interested in making profits from the Merge need to consider various strategies above to be eligible for the expected ETH PoW airdrop that will keep ETH miners busy after the upgrade.
