- Parity Technologies plans to transfer Ethereum client to a DAO.
- The short-term reaction is non-existent, though this move may be positive in the long-run.
Blockchain startup Parity Technologies plans to switch its Ethereum client to a DAO ownership & maintainer model. The developer believes that the maintenance of the Etherum mainnet eats up significant resources that could have been used to finance the development of innovative solutions.
The team said in the statement:
We spend an unfortunately large amount of time on relatively mundane maintenance work that could be better done by others in the community if only we had the correct structure set up. Indeed, Parity is increasingly unable to dedicate the level of resources required for even simple maintenance of this project.
Thus, the codebase and maintenance work will be transferred to the new decentralized project OpenEthereum that will be governed by a stake-weighted token system. This setup will allow creating a fair, transparent initial distribution of stake among existing and future contributors.
While the news had little effect on ETH price developments, in the long-run, the decision may have a positive outcome for the project. As we have already reported, Ethereum is moving towards rolling out Ethereum 2.0, also known as Serenity. It may be wise to outsource some tasks to focus on major tasks faced by the team.
ETH/USD: the technical picture
ETH/USD is changing hands at $131.91. The coin has recovered from Monday’s low of $129.71, though, though it is still below the initial recovery target created by SMA50 (Simple Moving Average) 1-hour at $138.65. We will need to see a sustainable move above this handle for the upside to gain traction with the next focus on psychological $140.00 reinforced by the upper line of 1-hour Bollinger Band. The next barrier is created by SMA100 1-hour at $141.00.
On the downside, $130.00 serves as a locals support. Once it is broken, the price will hit the recent low and may proceed to the South with the next stop as low as $125.00 (Pivot Point 1-month Support 1).
However, considering the upward-looking RSI (Relative Strength Index) on intraday charts, we may suggest that the price may be ready for short-term recovery from oversold levels.