• Grayscale, the world’s largest digital asset manager, is extending its review of Ethereum PoW tokens for 180 days.
• The move was necessary as the Proof-of-Stake consensus protocol is not energy-intensive and more secure for deploying new scaling solutions.
• Grayscale’s review is a crucial step in adopting PoS and may influence other major institutions to reconsider their stance on the proof-of-work system.
Grayscale Extends ETHPoW Review
Following the upgrade, Grayscale, the world’s largest digital asset manager, planned to review and decide whether to sell the former PoW system tokens. But in a recent report, the company noted that it is extending its review.
Move To Proof-Of-Stake Consensus Mechanism
In September 2022, the Ethereum blockchain network moved from its former Proof-of-Work system to the current Proof-of-Stake consensus mechanism. The move was necessary as the PoS consensus protocol is not energy-intensive but more secure and valuable for deploying new scaling solutions.
Extended Review Period For 180 Days
According to Grayscale’s announcement, the review extension will last 180 days. This will give the company ample time to decide the manner, the time, and possibility of selling ETHPoW –the asset after network’s Merge in September 2022. The asset manager cited environmental concerns surrounding PoW which are high energy consumption levels to validate transactions as a critical motivator for its extended review period. Moreover, uncertainty of trading venues and crypto asset custodians were also considered by Grayscale while making this decision of extended review period.
Price Fluctuations Of ETHPoW
The report also mentioned that price of ETHPoW may fluctuate if crypto asset custodians support these tokens or any significant development takes place in trading markets related to them.
Crucial Step In Adopting POS
Grayscale’s review is a crucial step in adopting PoS since it holds considerable amount of Ethereum in its Grayscale Ethereum Trust fund . It is possible that through this extended reviews other major entities may reconsider their position on proof -of – work system .