Binance will support ETH hard fork ahead of the Merge (Proof of stake upgrade), and for that, they will credit users’ accounts with tokens from any branched versions of ETH that will come about during i.e. from the network’s merger.
In order to protect client assets, the exchange also said that deposits and withdrawals for ETH and ERC-20 tokens will be suspended prior to the Merge.
Binance Will Support The Post-Merge ETH Fork
On Thursday, the world’s largest cryptocurrency exchange stated that it will credit customers’ accounts with tokens derived from any branched versions of Ethereum generated during the network’s merger event on September 15. This means that Binance will support ETH hard fork ahead of the Merge.
The exchange provided details on a possible scenario in which Ethereum divides into two rival chains, culminating in the birth of a new coin. In this case, Binance would continue to use the “ETH” ticker to represent the expected Proof-of-Stake Ethereum, which most crypto businesses and DeFi protocols have declared they would support.
However, if a branched Ethereum chain forms, the exchange expects to credit customers’ accounts with tokens from that network. The notification states:
“We will… credit to users’ Binance accounts the forked token from the minority chain at a ratio of 1:1, based on the snapshot of ETH balances before the Paris execution layer upgrade.”
Furthermore, Binance has said that it would accept withdrawals for any hypothetical Ethereum splits. However, the forked token will go through the same rigorous listing approval procedure as any other currency or token on the exchange.
Binance has also announced that deposits and withdrawals for ETH and ERC-20 tokens would be halted on September 6 to prepare for the network’s Bellatrix consensus layer update, and again on September 15 to prepare for the major Merge event. Other exchanges, including Coinbase, have stated that they will take similar precautions to protect consumers’ cash when the network updates.
ETH Most Anticipated Upgrade – The Merge
The Merge is the biggest major update to the Ethereum network to date, and it is the result of years of development work.
Ethereum presently uses the same proof of work consensus method as Bitcoin. Miners are required to validate transactions and keep the network safe as a result of this. It is sluggish, costly, and uses a lot of energy by design.
Proof of stake, on the other hand, substitutes miners altogether with validators who “stake” or “lock up” Ethereum to ensure the network’s security. Following the upgrade, the only way to produce new ETH will be to stake current ETH on the network, which analysts say would cause the cryptocurrency to depreciate.
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