ETHO hard fork: Like a Phoenix from the ashes…

Insights & decisions

A rogue party has increase the number of wETHO illegally by imbalancing the wETHO <-> ETHO bridge. The imbalance is about 17M wETHO. We have had now 2 choices: saying sorry to the Kucoin investors having bought wETHO and let them bleed - or: collateralise the damage. We did not think that punishing any specific investors would be smart, so an increase of inflation and to shoulder it jointly was the first and only possible decision. This requires then a hard fork.

 

Secondly, we decided that all assets held by the rogue party shall be burned. We thought that it is very difficult to explain to investors they need to cope with inflation and then the rogue party would still own assets in ETHO. 

 

Thirdly, we have been discussing marketing, incentivising projects and developers to build on ETHO for a while. We discussed that creating additional funding would be something which the whole ETHO ecosystem would appreciate and make it thrive. Therefore we took a decision to add 5M ETHO to the development account. Expenditures are controlled by council decisions and require a majority decision to get triggered. All decisions will be logged transparently. We think this is an investment into the future which also investors will like.

 

To summarise then:

Next step

At 8,750,000 we will hard fork, that means the above decisions are taken to action.

 

After that we will discuss with Kucoin how to find a solution for our investors and their customers. We have in any case our investors backed with the hard fork. It is obvious that we would like them to adopt main net as this would be the best way forward.

 

So stay tuned for the next updates.

 

 

 

Github Phoenix release