Ethereum Enthusiasts Determine Their DAO After A Successful Hard Fork

Jul 21, 2016 at 08:40 // Blockchain
Daniel Dabek

As of 12:00pm GMT yesterday, a majority of Ethereum Network miners agreed to fork the Ethereum blockchain in order to refund Ether that was hacked from the DAO (Decentralized Autonomous Organization). Now the Ethereum community must choose their DAO (“a way” in Chinese) with which coin they will support.

Even though a majority of miners approved of the DAO Hard Fork there are some members of the Ether mining community who have chosen to continue mining and supporting the network that does not include the hard fork. Two distinct chains now exist which effectively makes two distinct coins, ETH Classic (no fork) and ETH New (with DAO fork). As a result, users are choosing “the way”, whether to perpetuate the coin before the fork or to adopt fully the new way where the hard fork is implemented., the World news outlet, got an exclusive comment from Ethereum’s founder:

“In general, the hard fork has so far gone smoothly in every way that we had hoped. There was a single unambiguous winning chain with over 80% miner support, and this became obvious within two minutes of the fork block. The [withdrawable contract] is already processing ETH withdraws for DAO token holders, and there have so far been no errors detected. The various services in the ecosystem seem to all be on the fork.”

Founder of Ethereum Vitalik Buterin doesn’t deny non-fork chain

When asked Vitalik Buterin about the non-forked chain and if it had any utility or any support from the community and exchanges he said:

“I haven’t heard of an exchange supporting non-fork eth yet, but of course it may still happen. If non-fork chain has value, then miners will continue mining it.
That’s up to the community, I’m not about to tell a blockchain how valuable it should be”

These two chains are now on their independent courses. The DAO hard fork chain will never be merged with the Non-fork supporting chain. 

The DAO hard fork software reverses Ether that was exploited from the DAO contract and  makes the Ether redeemable at a ratio of 100 DAO tokens per 1 Ether. So far more than 45% of the DAO tokens have been redeemed for Ether.

DAO.jpg, Cryptocurrency News Outlet, also asked Michael Patryn, co-founder at Quadriga Fintech Solutions for his opinion on how the DAO conversion for ETH would affect the price of Ether:

“Once a larger percentage of eth has been returned [from the DAO], most of us expect the price of Ether to drop substantially. ETH shorts are extremely high right now.
Many [people] purchased ETH for the purpose of investing in the DAO. Once their ETH is returned, it would stand to reason that they would sell.”

The price of ETH is up 9% following the successful Hard Fork introduction.

Show comments(0 comments)