Binance also intends to use the ticker “ETH” for the upcoming Proof-of-Stake version of Ethereum.
Binance Offers Merge Update
Binance is preparing for the possibility of an Ethereum fork.
The world’s largest cryptocurrency exchange announced on Thursday that it will credit users’ accounts with tokens from any forked versions of Ethereum created during the network’s merge event on September 15.
The exchange detailed a possible scenario in which Ethereum splits into two competing chains, resulting in the creation of a new token in a notice. In that case, Binance will continue to use the “ETH” ticker to represent the planned Proof-of-Stake Ethereum, which most crypto companies and DeFi protocols have stated they will support.
However, if a forked Ethereum chain is created, the exchange intends to credit users’ accounts with tokens from it. “We will… credit the forked token from the minority chain to users’ Binance accounts at a 1:1 ratio, based on the snapshot of ETH balances prior to the Paris execution layer upgrade,” the notice stated.
Binance has also stated that any potential Ethereum forks will be supported by withdrawals. The forked token, however, will go through the same stringent listing review process as any other coin or token on the exchange.
Binance has also confirmed that deposits and withdrawals for ETH and ERC-20 tokens will be suspended on September 6 in preparation for the network’s Bellatrix consensus layer upgrade, and again on September 15, when the main Merge event is scheduled to take place. Other exchanges, including Coinbase, have stated that they will take similar precautions to prevent users from losing funds as the network upgrades.
The Merge is arguably the most significant update to the Ethereum network to date, and it represents the culmination of years of development work. Although the majority of Ethereum stakeholders support the transition from the energy-intensive Proof-of-Work (PoW) consensus mechanism to the greener Proof-of-Stake (PoS), a vocal minority opposes the change. In recent weeks, opponents of Ethereum’s PoS transition have discussed forking the network, resulting in a competing version of the blockchain that retains the old PoW consensus. It remains to be seen whether there will be enough support to fork Ethereum when the Merge occurs next month.