The Ethereum Merge is one of the most anticipated events in the blockchain space—marking the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). Scheduled for September 13, this upgrade reshapes the future of ETH and introduces new opportunities for holders. Among them? Potential airdrops of ETH PoW tokens from forked chains.
If you're holding ETH, now is the time to act. Whether you're in it for speculation, long-term investment, or simply want to be prepared, following a strategic approach can help you maximize your benefits. Below are 7 essential steps to position yourself advantageously before the Merge.
👉 Discover how to secure your crypto assets ahead of major network upgrades.
Understanding the Ethereum Merge and ETH PoW Airdrops
Ethereum’s shift to PoS ends traditional mining on the network. As a result, miners are forking the chain to maintain a PoW version—commonly referred to as ETH PoW—so they can continue mining. This fork could lead to an airdrop of new tokens to existing ETH holders.
However, eligibility isn’t automatic. How and where you hold your ETH matters significantly. To ensure you’re eligible for any potential airdrops, follow these steps carefully.
Step 1: Hold ETH in a Supported Wallet
To qualify for ETH PoW token airdrops, your ETH must be held in a wallet that supports the fork. Ideally, use a non-custodial wallet, such as a hardware wallet (e.g., Ledger or Trezor). These give you full control over your private keys and guarantee access to any forked assets.
If you're using a centralized exchange, confirm whether it supports the ETH PoW fork. Some platforms may:
- Not distribute forked tokens
- Delay distribution by weeks or months
- Refuse trading pairs post-fork
Check official exchange announcements before the Merge date. Exchanges like OKX often provide timely updates on asset handling during forks.
👉 Stay updated on exchange support for blockchain forks and airdrops.
Step 2: Move ETH from Layer 2 Networks to the Mainnet
Assets held on Layer 2 solutions like Optimism, Arbitrum, Polygon, or Avalanche will not be eligible for the airdrop. The snapshot for the fork will only recognize ETH balances on the Ethereum mainnet.
Therefore, transfer your ETH from any L2 network back to the Ethereum mainnet well before the Merge. Be mindful of gas fees and network congestion during this period—plan your transfer early.
Pro Tip: Complete this step at least 48 hours before the Merge to avoid last-minute issues.
Step 3: Convert WETH to ETH
Wrapped ETH (WETH) is used across DeFi platforms for compatibility, but it may not be recognized on the new PoW chain. While there’s a possibility that WETH PoW could be supported via decentralized exchanges (DEXs) post-fork, relying on an unstable, newly launched ecosystem is risky.
To eliminate uncertainty:
- Unwrap all WETH into native ETH
- Do this before the snapshot
This ensures your holdings are in the correct format for airdrop eligibility.
Step 4: Withdraw Liquidity from DeFi Protocols
If you’ve provided liquidity on platforms like Uniswap, Curve, orBalancer, your ETH may not be counted in the airdrop snapshot. Most forks only recognize direct wallet balances—not staked or pooled assets.
Recommended action:
- Withdraw liquidity now
- Re-deposit after the Merge and fork settle
Keep in mind: As more users pull liquidity, temporary DeFi liquidity crunches may occur. This could impact yields and trading efficiency across protocols.
Step 5: Borrow ETH via Aave or Compound
Here’s a strategic move: borrow additional ETH using platforms like Aave or Compound. Since airdrops are typically based on your wallet balance at snapshot time, borrowed ETH counts toward your total.
This means you can increase your airdrop potential without spending extra capital. However:
- Ensure you have sufficient collateral
- Monitor utilization rates—many expect them to spike near 100% as demand surges
Borrowing before the Merge could amplify your returns—if managed responsibly.
Step 6: Monitor the stETH/ETH Market
With stETH (staked ETH) playing a central role in the Merge narrative, price movements between stETH and ETH offer speculative opportunities.
As the Merge approaches:
- Some users may sell stETH to obtain liquid ETH for airdrop eligibility
- This could temporarily depress stETH prices
Opportunity: Buy stETH at a discount if the market overreacts. Historically, stETH has converged back to parity with ETH post-event.
Use this volatility to your advantage—but always assess risk tolerance and market depth.
Step 7: Buy the Rumor, Sell the News
Market psychology often follows a simple rule: buy the rumor, sell the news.
Currently, IOUs (promises) for ETH PoW tokens trade at around 2.8% of ETH’s value—indicating low expectations. But post-Merge, short-term speculation could drive prices up briefly.
Strategy:
- Position yourself before the Merge
- Take profits immediately after launch
- Avoid holding long-term unless fundamentals justify it
Most past forked tokens (e.g., Bitcoin Cash variants) eventually lost relevance due to lack of adoption and miner-driven motives. Don’t assume ETH PoW will be different.
Frequently Asked Questions (FAQ)
Q: Will every ETH holder automatically receive ETH PoW tokens?
A: No. Only those holding ETH in compatible wallets or supported exchanges at the time of the snapshot will qualify.
Q: Can I lose my original ETH by claiming a forked token?
A: No. Forked tokens are separate assets. Claiming them does not affect your original ETH holdings—provided you follow safe procedures and avoid phishing sites.
Q: Are ETH PoW tokens guaranteed to have value?
A: Not guaranteed. Most forked tokens see initial trading but often decline due to weak ecosystems and high sell pressure from miners.
Q: Should I keep my ETH on an exchange or in a personal wallet?
A: For maximum control and eligibility, use a non-custodial wallet. Exchanges may delay or restrict access to forked tokens.
Q: What if multiple ETH PoW forks happen?
A: It’s possible. In such cases, only one chain may gain traction. Research each fork carefully—some could be scams aiming to steal signatures or keys.
Q: Is this financial advice?
A: No. Everything discussed here is informational. Always do your own research (DYOR) before making investment decisions.
The next several days leading up to the Merge will likely bring volatility, confusion, and rapid changes across markets. Just as seen during the 2017 Bitcoin forks, multiple chains may emerge—but only one tends to survive long-term.
Your best defense? Control your keys. Hold ETH in a self-custody wallet. Act early. Stay informed.
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Remember: while airdrops can offer quick gains, most forked tokens fade quickly. Prioritize security, understand the risks, and never invest more than you can afford to lose.
The Merge isn’t just a technical upgrade—it’s a moment of opportunity. Make sure you’re ready.