Cryptocurrency exchange Bitfinex has introduced a new token called chain split tokens (CSTs) that will allow its users to trade on the potential hard fork in the Ethereum network.
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The exchange said in a blog post that users will be able to trade with both tokens: ETH Proof-of-Work (PoW) and ETH Proof-of-Stake (PoS). Users will also be able to redeem tokens in equal numbers of ETHW and ETHS to extract ETH.
Bitfinex says there are likely three scenarios with the following outcomes:
- No consensus change achieved on the current Ethereum. As a result, ETHS will expire worthless and ETH will be given in exchange for each ETHW holding.
- If a successful consensus change achieved and no fork happen, ETHW will expire worthless (on December 31, 2022) and ETH will be given in exchange for each ETHS holding.
- If a successful fork and a successful consensus change for Ethereum achieved, users will be credited with their respective ETHW and ETHS tokens.
Ethereum is expected to undergo the Merge update on or around September 15 at a total terminal difficulty of 58750000000000000000000. However, the developers admitted that the date is not final yet and things may change.
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