On April 23, Binance Coin is set to be activated on Binance Chain. After that, users are encouraged to migrate their balances to the new network.
Binance, the world’s largest crypto exchange, is launching its new custom blockchain, Binance Chain. In a recent announcement, the company revealed dates for executing Mainnet Swap. On April 23, its Binance Coin (BNB) that now runs on Ethereum will be activated on the new network.
On April 18, Binance hinted at the launch of its native blockchain network Binance Chain. A couple of hours later, the exchange announced the launch of its Decentralized Exchange (DEX).
Today marks the birth of a new genesis block.
At that day, all pre-selected validators were online to produce blocks with consensus from the genesis block. According to the announcement, Binance Coin would be created in the genesis block.
On April 23, Binance Coin is set to be activated on Binance Chain. After that, users are encouraged to migrate their balances to the new network. Old Ethereum-based tokens will be destroyed, while new BNB tokens are created on Binance Chain, which will help to maintain a constant supply across both networks.
Further, the exchange provided information on how BNB will be managed. The initial total supply for the tokens will make up 200 million, 48 million of which will be frozen and 11,654,398 will be burned on Binance Chain.
“The first batch of 5,000,000 BNB will be allocated and deposited into an address belonging to Binance.com 148 in order to convert the ERC20 BNB for existing owners. Binance will burn 5,000,000 ERC20 BNB as well, to keep the total supply of BNB constant.
As more users convert to BEP2 BNB (native), more BEP2 coins will be released and proportional amounts of ERC20 BNB will be burned while keeping the total supply across both networks constant.”
Moreover, on April 23, Binance Chain Explorer and Web Wallet will be available, and Binance.com will be able to help users with the mainnet swap. Users will be able to provide a Binance Chain address for BNB withdrawal requests, with the withdrawal serving as a mechanism to convert ERC20 BNB tokens into BEP2 BNB tokens native to Binance Chain.
Another option for users is to keep the ERC20 based BNB tokens by withdrawing their BNB from Binance.com 148 accounts into an Ethereum Wallet before 2 a.m. on April 23. After that, Binance.com will not support ERC20 BNB tokens.
It is notable that ERC20 BNB tokens will only have temporary usage. The company has also pointed out that the timeline of the events may change.
More About Binance Chain
The Binance Chain aims at facilitating faster token issuance and simple asset transfer. It is custom-built for DEXs with one-second block times coupled with a large transactional capacity. It is mainly focused on the transfer and trading of blockchain assets, as well as providing new possibilities for the future flow of blockchain assets. Binance Chain also concentrates on performance, ease-of-use, and liquidity.
Binance CEO Changpeng Zhao explained:
“With the core Binance Chain technology, Binance DEX can handle the same trading volume as Binance.com is handling today. This solves the issues many other decentralized exchanges face with speed and power.”
As for Binance DEX, it is based on the Peer-to-Peer (P2P) protocol and allows users to exchange crypto assets directly between each other. The main advantage of Binance DEX is the matching system. Binance DEX is created on a high powerful blockchain engine ‘Tendermint Core’ with one-second block times, that provides the speed, which is also the same to centralized exchanges.