Energy Web 2025 Technology and Governance Upgrade FAQ

This document lists frequently asked questions and brief answers in relation to the Energy Web 2025 Technology and Governance Upgrade. Further information is available in other sections of the GitBook documentation and the related Energy Web 2025 Yellow Paper, as well as the 2025 EWT White Paper,

1. What Does the Energy Web 2025 Upgrade Entail?

The 2025 upgrade marks Energy Web platform’s transition from the legacy Energy Web Chain (EWC), a public but permissioned Proof‑of‑Authority (PoA) network, to Energy Web X (EWX), a public, permissionless, nominated Proof‑of‑Stake (NPoS) parachain on Polkadot.

The upgraded Energy Web technology platform consists of:

  • Energy Web X (EWX) – the core blockchain layer providing NPoS, on‑chain governance, native token bridging, and EVM-compatible execution.

  • Verified Compute Cloud (VCC) – a decentralised off-chain business logic computation service, developed by the Energy Web Foundation as a blockchain layer 2 solution, complementing and interacting with EWX for on-chain finalization. VCC supports verification, automation and auditability for sustainable, mission-critical enterprise solutions.

With the upgrade, EWC transitions into an archive mode, while EWX becomes the strategic foundation for long-term use. EWT is deployed as an ERC‑20 representation on Ethereum for broader access and liquidity, while maintaining EWT supply cap of 100 million.

2. Why Was This Upgrade Required?

The upgrade from legacy Energy Web Chain (EWC) to Energy Web X (EWX) is a strategic evolution driven by the need for enhanced scalability, security, governance, economic stability and interoperability, critical for running enterprise grade applications on-chain.The original EWC PoA model successfully bootstrapped early enterprise deployments but presents limitations to decentralisation and linteroperability.

The 2025 upgrade addresses these constraints by:

  • Moving to open, permissionless NPoS on EWX

  • Leveraging Polkadot interoperability (XCM)

  • Integrating ERC‑20 EWT on Ethereum for higher accessibility and utility

  • Introducing VCC as layer 2 decentralised off-chain business logic for enterprise-grade service execution

  • Implementing transparent, token‑holder-driven governance and treasury management

3. How Was This Upgrade Authorised (Zurich Hard Fork)?

The upgrade was formally approved through EWC’s validator governance process and funded through the Community Fund. Validators voted on Energy Web Architecture Upgrade Proposal, approved by supermajority, implementing the Zurich Hard Fork, which initiated runtime upgrades (EWC supply freeze and transition to NPoS at EWX), ERC‑20 deployment, and bridge topology with additional advanced features including liquid staking and BYOT, as well as Worker Node Pallet integration facilitating layer 2 Verified Compute Cloud service. Any further upgrades will follow the new, broader on-chain governance mechanism.

Pre-upgrade the EWC Validators administered the Community Fund and determined the manner in which its EWT may be apportioned in accordance with the one-vote per Validator governance structure. For a list of previous motions please see this section.

4. How Is the Upgrade Rolled Out (Zurich Hard Fork)?

  • Freezes EWC token minting at ~83.26M EWT.

  • Moves governance and chain evolution to EWX.

  • Keeps EWC operational as an on‑ramp only (no new block rewards; no lowering back from EWX; existing apps may continue)

  • The Energy Web Bridge maintains 1:1 conservation using lock/mint and burn/unlock semantics.

Note: the Zurich hard-fork was successfully executed at block height 36871700 on the Energy Web Chain, on 6 August 2025 at 07:14:20 AM +4 UTC. https://explorer.energyweb.org/block/36871700/transactions

Important: If you still hold EWTb, you must first bridge it back to EWC using the legacy bridge, and only then lift it from EWC to EWX. You cannot bridge EWTb directly to EWX, or convert it directly into the new ERC-20 EWT on Ethereum. For more, please see the section on EWT Token Mobility.

2. ERC‑20 EWT Deployment & Bridge Topology

Bridge behaviour:

  • EWC → EWX: one‑way lift.

  • EWX ↔ Ethereum: full bidirectional lock/mint, burn/unlock.

  • Ensures unified, single EWT supply across chains.

3. Staking Activation (NPoS)

  • Collator onboarding with minimum self‑stake.

  • Delegation from Nominators.

  • Gradual decentralisation.

Note: The NPos upgrade to the Energy Web X chain was deployed on 8 October 2025 at 12:46:54 PM UTC. See runtime upgrade event: https://energywebx.subscan.io/block/5059493

4. Delegated Stake & Liquid Staking (stEWT)

  • Delegators earn rewards.

  • Liquid staking introduces stEWT for use across ecosystem applications.

5. VCC & BYOT

  • VCC rollout for decentralized business logic compute.

  • BYOT support via Polkadot Asset Hub for stablecoins and additional tokens.

6. Evolution of On-Chain Governance

  • Best practices for on-chain governance mechanisms to be implemented while accounting for network security, particularly learning from Polkadot and other ecosystem implementations.

5. Who Is Affected and What Actions Are Needed?

EWC Validators

  • Upgraded node clients for the Zurich Fork.

  • No PoA block rewards issued post-apgrade.

  • Encouraged to transition to EWX Collators.

Exchanges & RPC Providers

  • To integrate ERC‑20 EWT representation.

  • To update nodes to post‑fork configurations.

Developers

  • Existing EWC deployments still run, but long‑term projects should target EWX.

  • Both Launchpad+VCC and standard EVM routes are available.

Token Holders

  • Can lift EWT from EWC → EWX at 1:1.

  • Can lower between EWX ↔ Ethereum.

  • Cannot lower back to EWC after ERC‑20 activation.

For more, please see the section on EWT Token Mobility.

6. What Is Changing in Tokenomics?

The token model is now:

  • Fixed supply cap: 100 million.

  • Frozen legacy minted supply: ~83.26M.

  • Headroom: ~16.74M EWT that can only be minted via on‑chain governance.

  • No automatic inflation.

  • Transparent minting only under referendum, with mint events originating on Ethereum and bridged to EWX.

  • Enhanced token utility via new token mobility features (staking, BYOT and liquid staking) and layer 2 Verified Compute Cloud service.

7. How Are EWX Network Staking Rewards Distributed?

  • Rewards come from transaction fees and any governance‑approved issuance.

  • Collators earn points for block production.

  • Rewards are allocated proportionally to points.

  • Rewards are split between Collators and their Nominators based on stake.

  • Slashing applies for misbehaviour or downtime.

Parameters (reward rates, slashing percentages, active set size) can evolve through governance.

8 What is Verified Compute Cloud?

Verified Compute Cloud (VCC) Service has been developed by the Energy Web Foundation as a blockchain layer 2 solution for off-chain business logic computation, complementing and interacting with EWX for on-chain finalization. Key aspects of VCC include:

  • Verified Compute Cloud Solution Groups (VCG) comprise VCC Operators and Stakers providing a service pursuant to a select VCC Protocol determined by the VCC Client.

  • VCC Clients are users of the VCC service that determine the VCC Protocol and pay for the service.

  • VCC Operators: Independent, distributed node operators technically leveraging Energy Web’s Worker Node Pallets, opting in to execute tasks defined by a given business logic (e.g. computing an energy load forecast or validating a batch of renewable energy certificates), communicating the outcome for subsequent on-chain verification and finalisation pursuant to a pre-agreed set of rules (VCC Protocol).

  • VCC Stakers: EWT token holders providing a slashable collateral as a service to support the enforcement of VCC Protocol requirements. This service does not confer ownership, revenue rights, nor does it guarantee yield.

  • VCC Protocol: Each registered VCC solution comes with a deterministic business logic specification that defines both the computation tasks and the rules for participation and achieving consensus on results; for instance, the rules may include:

  • Required stake per VCC operator, acceptable identities or certifications for data management (if any),

  • Number of VCC operators that need to agree (quorum threshold like majority or supermajority),

  • Time windows for task execution and result submission,

  • Fee for successful execution and penalties for faults/disagreements, etc.

More information on VCC enterprise roll-out and how to qualify as a VCC Operator or Staker will be provided soon.

10. What is Liquid Staking on Energy Web X (EWX)?

Liquid staking on Energy Web X (EWX) lets users stake EWT without locking it, by depositing into a pooled nominator managed by the Liquid Staking Pallet and receiving liquid stEWT in return. stEWT stays fully transferable and usable across the ecosystem, including for participating in Verified Compute Cloud groups (VCGs), while continuously accruing staking rewards. Those rewards are automatically restaked, increasing the stEWT:EWT exchange rate over time without minting new tokens. This simplifies the staking process for users, removes the need to manage delegations and restake rewards while compounding utility, safeguarding network security and avoiding excessive concentration of stake. stEWT will remain bound by the overall EWT supply cap.

The liquid staking model unlocks several key benefits for stakers and the Energy Web ecosystem:

  • Stake EWT into a shared pool and receive liquid, transferable stEWT.

  • No lock-up: stEWT can be moved, held, or used in applications (e.g., Verified Compute Cloud).

  • Auto-compounding: staking rewards increase the exchange rate, boosting stEWT value.

  • No delegation management required; the pallet stakes across a curated collator set.

  • Improves network security, liquidity, and token efficiency across the ecosystem.

11. What Happens to the Community Fund?

The Community Fund transitions into the EWX on-chain treasury:

  • Funded by fees, slashing, and governance‑approved issuance.

  • Managed directly by EWT token holders.

  • Intended to continue to support ecosystem development, audits, grants, and upgrades.

12. How to Become a Collator and Apply for Nomination?

During the transition phase:

  • Onboarding is curated and based on meeting technical standards and minimum stake.

  • EWF supports eligible operators with nomination.

Future phases aim for:

  • Fully permissionless onboarding.

  • Optional KYC/KYB overlays for regulated applications.

13. What Is Proof of Stake on EWX?

EWX uses Nominated Proof-of-Stake:

  • Collators produce blocks, stake EWT, earn rewards, and face slashing in case of misbehave or non-performing.

  • Nominators back Collators and share rewards and risks.

  • Relay Chain Validators provide finality.

Features include:

  • Minimum self‑stake and total stake thresholds.

  • Dynamic active set based on total backing.

  • Slashing calibrated based on severity.

  • Future support for liquid staking (stEWT).

Participation in EWX is voluntary and comes with both risks and opportunities, as outlined in the 2025 EWT White Paper, and especially in the relevant risk disclosures.

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