Ethereum is for the rich

  • Again, Hoskinson references a big issue in the Ethereum blockchain despite the recent Merge.
  • The IOG founder also said Cardano stakers don’t have to be rich to participate in Cardano staking, unlike Ethereum stakers.

IOG Creator, Charles Hoskinson, has shared his insights regarding the recent Ethereum switch from a proof-of-work (PoW) to a proof-of-stake (PoS) network. Compared to a PoW, a PoS network requires less energy to support a chain. In a recent tweet, Hoskinson called Ethereum the Hotel California of crypto even though he was one of the founders of the popular network.

Hoskinson made the comments following a revelation that the Kraken exchange is preventing users from withdrawing their staked Ethereum tokens till the Shanghai upgrade. The Shanghai upgrade is Ethereum’s next scheduled upgrade and isn’t due till at least six months after the Merge. Kraken’s customer support explains that the Ethereum blockchain is responsible for this restriction, not theirs.

It is the second time within a short period that the Cardano founder will comment about Ethereum’s recent PoS switch. Hoskinson said there is a better way of implementing the PoS protocol in his previous comment. Then, he added that users’ ADA aren’t locked because of Cardano PoS because the staking happens without the users leaving their wallet, and they can withdraw their coins anytime. Hoskinson’s Hotel California analogy is taken from the eagles’ band classic song, “the Hotel California.”

Part of the song’s lyrics states, “we are all just prisoners of our own device.” Surprisingly, Twitter user @stakewithpride commented in the tweet thread that there is no estimated time plan for eth withdrawals. Also, Ethereum hasn’t officially stated that the withdrawals are scheduled for Shanghai.

He added some screenshots from the discord channel to prove his point. Serveth Support founder, Micah Zoitu, further said that it was Exchanges that started the rumors about ETH withdrawals happening after the Shanghai upgrade. Yet, Zoitu said it is crucial at this stage that Ethereum allows investors “to withdraw in 2023 and not 2024.”

Cardano stakers don’t have to be rich like Ethereum stakers

In a separate screenshot, @stakewithpride shared his discussion with Zoitu, with the latter explaining that Ethereum stakers can afford not to withdraw their eth immediately but can wait till a later time. According to Zoitu, Ethereum stakers are wealthy and have the resources to purchase costly specialized hardware.

Hence, the priority here is the needs of users and not the needs of stakers. Hoskinson also commented on the pair’s discussion, saying Cardano stakers are ordinary people. They don’t need to be wealthy to be involved in Cardano staking. Hoskinson reiterated that this is a crucial difference between Cardano and Ethereum.

Hoskinson is no stranger to controversies. Earlier in the week, he also tweeted that Ethereum’s PoS switch marks the beginning of an era where everyone will assume that all PoS networks work similarly to Ethereum’s PoS. He added that the Bitcoin maxis would attack Cardano and label all Ethereum problems as Cardano’s.

However, dogecoin co-founder, Billy Markus, assured the Cardano founder that he shouldn’t worry about his tweet since many in the crypto space can’t differentiate between PoS and PoW; they only pretend to understand.