The Ethereum network wants to investigate the proof-of-stake [PoS] mechanism using “The Merge.” However, it appeared to be more difficult than anticipated to leave behind proof-of-work [PoW]. Nevertheless, a number of well-known networks have expressed their support for the Merge, which is anticipated to take place in September. Tether, the biggest stablecoin issuer, was the most recent to express support for the impending update.
The recent blog post “USD Supports ETH Proof-of-Stake Transition” was written by Tether [USDT]. The network said that it had no intention of perplexing or harming the ecology. The network would function accordingly with the impending Ethereum upgrade. The blog post further said,
“Tether believes that in order to avoid any disruption to the community, especially when using our tokens in DeFi projects and platforms, it’s important that the transition to POS is not weaponized to cause confusion and harm within the ecosystem.”
Tether also emphasised how important a seamless transition was to maintaining the “long-term sustainability of the DeFi ecosystem and its platforms.”
It should also be noted that Circle Pay’s support for the Merge was revealed before this statement was made. Since Circle Pay is the creator of USD Coin (USDC), it is said that it competes with Tether. The Ethereum network has a stronghold over USDT and USDC, respectively.
Ethereum’s shift to POS drives a wedge
As was already mentioned, there is a major rift as a result of Ethereum’s switch to PoS. A hard fork is developing, led by famous miner Chandler Guo. Uncertainty surrounds the hard fork’s future, though. Nevertheless, support has already been provided by a number of exchanges, including Poloniex, BitMex, and others. The Tron Foundation’s founder, Justin Sun, seems to be growing more optimistic about the hard fork.
While Sun acknowledged that his exchange had previously shown a preference for Ethereum PoW, he promised that his stablecoin USDD will do the same. Speaking lately about USDD, he said,
“I think decentralized stablecoins, like [Tron stablecoin] USDD, [a] decentralized U.S. dollar, is still essential to our industry because, as we all know, all the components of [decentralized finance] today it’s all decentralized … except stablecoins.”
Tether didn’t mention the anticipated hard fork in its most recent blog post. Because USDD will be used in the ETHW chain, many people assumed that Tether might be reversing course.