TheDAO Hardfork, where do we stand? July 13th, 2016

After a failed attempt at getting a soft fork of the ground, it looks increasingly like we will go straight to a hard fork in the coming days according to carbonvote.com statistics. It seems that c. 82% are in favour ….but what does this mean…

Screen Shot 2016-07-13 at 10.55.45

It took some time, but large confusions have been cleared up about a hard fork and what it would mean too….

Reto Trinkler, founder of a soon-to-be announced Ethereum project explained to Blockchainwizz that unlike Bitcoin, an Ethereum hard fork will not involve a rollback of the blockchain state.

“It will involve only an update in code to achieve two things; Firstly, to transfer the Ether from the hacked and infiltrated childDaos back to the mainDao (or theDAO). Secondly, it will convert theDAO smart-contract to a withdrawal only smart-contract, allowing theDAO tokens to be redeemed for Ether. It will not affect any other transaction history or balances.”

 

Christopher Jentzsch’s blog a few days ago summarised that there are three decisions regarding the hard fork to be made in the coming days and provided a menu of different ways these decisions could go to be found here: (https://blog.slock.it/options-in-the-hard-fork-90e467483c0#.10u8hbu9e);

The decisions are:

Screen Shot 2016-07-13 at 11.03.20

Vitalik Buterin was quick to emphasise that this is a community decision but encouraged developers to focus on options ‘1b/2b/3c’ – implying ignoring the innocent childDAO’s ether (1b), allowing token holders to donate their share of the extraBalance to ‘something’ (2b), and solve everything now, without any delay (3c).

The clock is ticking…. and in the meantime, it is worth saying that the DAOETH spread has continued to collapse. At the extremes, DAO was trading at a  60% discount to ETH… Today it is trading within the 5-10% range, implying that a clean solution will be implemented in coming days.

blockchainwizz@gmail.com

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