Ethereum Abandons PoW: A Major Strategic Mistake

Ethereum (ETH) transitioning to PoS (Proof of Stake) has been packaged as a technological advancement, but in reality, it is a significant economic strategic error. PoW (Proof of Work) ensured the decentralization and security of the Ethereum network through genuine computational power competition, while PoS leads to a complete domination by capital oligarchs, violating the spirit of blockchain.

After switching to PoS, the staking lock-up rate of ETH skyrocketed, resulting in a large amount of liquidity being frozen and a decrease in on-chain trading willingness. The natural market liquidity brought by miners disappeared, and market vitality significantly weakened. After the merger, the market did not usher in the anticipated bull market; instead, the ETH price remained low for an extended period, indicating a lack of confidence from capital in the new mechanism.

Even more seriously, the Ethereum DApp ecosystem has begun to decline. The number of active users has dropped, and many new developers are flocking to Layer2 or other public chains. The Ethereum main chain has gradually become a stage for a few large whale stakers, no longer a fertile ground for innovation.

PoW is not only a security mechanism but also an open economic system that encourages individual free participation and maintains network vitality. In contrast, PoS solidifies power, causing Ethereum to gradually lose its ability for fair competition and self-evolution.

By abandoning PoW, Ethereum loses not just its consensus mechanism but also its most precious soul.

The market's indifference is the most direct rebuttal.