CoinJar Support

Segwit2x Blockchain Fork

Adrian (Melbourne) -

Update

Earlier this month, we released a statement on the possibility of an upcoming hard fork to the Bitcoin Network called Segwit2x (provided within this Knowledge Base article). Since our announcement, this proposed change has been suspended due to lack of industry support, meaning the likelihood of this blockchain event proceeding has diminished significantly. 

We no longer anticipate any need for CoinJar services to undergo downtime, so Bitcoin trading is expected to continue as usual.

As always, our Engineering Team will continue to monitor this as a precaution, and provide any necessary updates as early as possible. Should you wish to maintain control of your Bitcoin for any specific blockchain event, we encourage you to withdraw your funds to a privately hosted wallet.

Thank you for your patience during these updates. As always, we aim to remain as transparent as possible for all major upcoming changes to CoinJar. Some further readings are available below.

 



 

What's happening?

Note: Please refer the Update section above. Segwit2x has been suspended. 

Sometime in mid-November (at block 494,784), the Bitcoin network is expected to undergo a "hard fork", resulting in the creation of a new "Segwit2x" blockchain and another type of Bitcoin. We estimate this will take place on or around 16 November, 2017. 

For further information on this blockchain event, we've provided multiple different articles on Segwit2x below. 

 

Preparing for the fork

Note: Please refer the Update section above. Segwit2x has been suspended. 

This is a contentious hard fork with no planned replay protection, therefore we anticipate major network disruption when the blockchain is forked. CoinJar will suspend all trading and wallet services approximately 24 hours before the fork. As the exact date of the fork is unknown, we may not be able to provide any guidance on the exact time this suspension will commence. 

If you wish to control your Bitcoin funds throughout the Segwit2x fork, we encourage you to withdraw your Bitcoin from CoinJar to a privately hosted bitcoin wallet before this blockchain event. Bitcoin funds must be withdrawn from CoinJar before 13 November, 11:59am Melbourne time. 

Funds stored in Cash Accounts, Hedged Accounts, or on CoinJar Swipe are not influenced by blockchain events. 

Sending payments to external bitcoin addresses

 

CoinJar's policies

CoinJar always seeks to protect the interests of our customers. For the upcoming Segwit2x fork, a new type of Bitcoin will be created, but there are significant uncertainties. At this moment, CoinJar is designed to support only one kind of Bitcoin. If we are going to make other kinds of Bitcoins available (either for trading or to claim), they will be made available in January 2018 at the earliest. 

As the situation of this blockchain event can change quickly, CoinJar reserves the right to revise our policies and timelines if the information we have available changes. We may not be able to always provide advance notice if this happens. 

 

After the fork

Note: Please refer the Update section above. Segwit2x has been suspended. 

In the interest of transparency and objectivity, we are sharing the decision framework we're using to determine the outcome and impact of the Segwit2x fork. For ease of presentation, we define the Segwit2x coin to be B2X, and the original Bitcoin to be B1X. The definition of BTC is currently the original Bitcoin, but indeterminate after the fork. 

Following this blockchain event, we will continue to monitor the network for 96 hours, and at the end of 96 hours, we will calculate an "Adoption Threshold" based on the simple average of the following two metrics:

  • Price: B2X Average Price / (B1X Average Price + B2X Average Price) at the end of monitoring period, taking from averages of GDAX, Bitfinex, Bitstamp, Gemini and Kraken. (If one or more exchanges do not list B2X, they are counted as $0 for the purpose of this average price calculation).
  • Hash power: B2X Difficulty / (B1X Difficulty + B2X Difficulty) at the end of monitoring period, taken as the last block mined at the end of monitoring period.

Depending on the "Adoption Threshold" of B2X, we will have the following policies in place:

< 1%

We will not support B2X and no claims will be accepted. CoinJar will not split the coin or implement any protection against replay attacks. Due to replay attacks in the network, it is possible that CoinJar will not have any B2X for claims in the future.

If you want to retain B2X in this scenario, you must withdraw your BTC prior to platform suspension.

1% - 20%

We will split the coins and open a 60-day claim window for customers to claim B2X based on the BTC balance held at block 494,784. We will only start the claims process up to 8 weeks after the fork.

If you want to access B2X quickly in this scenario, you must withdraw your BTC prior to platform suspension.

20% - 80%

We will split the coins and freeze the B2X balance for all CoinJar customers. CoinJar will support B2X/AUD trading starting from January 2018 and B2X will be made accessible from that time. The platform will continue to be B1X only and BTC will still refer to the original Bitcoin.

If you want to access B2X quickly in this scenario, you must withdraw your BTC prior to platform suspension.

80% - 99%

We will re-define BTC to refer to B2X due to the significant adoption. The platform will no longer support B1X. We will split the coins and open a 60-day claim window for customers to claim B1X based on the BTC balance held at block 494,784. We will only start the claims process up to 8 weeks after the fork.

If you want to access B1X quickly in this scenario, you must withdraw your BTC prior to platform suspension. 

> 99%

We will not support B1X and no claims will be accepted. We will re-define BTC to refer to B2X due to the significant adoption and switch all trading to be B2X only. CoinJar will not split the coin or implement any protection against replay attacks. Due to replay attacks in the network, it is possible that CoinJar will not have any B1X for claims in the future.

If you want to retain B1X in this scenario, you must withdraw your BTC prior to platform suspension.

 

Adoption threshold BTC refers to Possible claims offered Traded BTC after service disruption Traded BTC after January 2018
< 1%  B1X  None  B1X  B1X
 1% - 20%  B1X  B2X  B1X  B1X
 20% - 80%  B1X  None  B1X  B1X & B2X
 80% - 99%  B2X  B1X  B2X  B2X
> 99%   B2X  None  B2X  B2X

 

 

Updated: 13 Nov 2017 (AS)

Reviewed: 13 Nov 2017 (AS)


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