Binance Announces Support For Post-Merge Ethereum Fork

Twitter icon  •  Published vor 1 Jahr  •  Hassan Maishera

Cryptocurrency exchange Binance has announced that it would support Ethereum fork tokens following the Merge event next month.

Binance, the world’s leading cryptocurrency exchange, has revealed that it would support Ethereum fork following the Merge event next month.

Ethereum’s Proof-of-Work (PoW) chain will migrate to the Proof-of-Stake (PoS) chain upon hitting the Terminal Total Difficulty (TTD) value of 58750000000000000000000. The event is called the Merge. However, there are some proponents within the Ethereum ecosystem that desire to continue to use the PoW mechanism and want to fork the blockchain ahead of the Merge.

Binance has now revealed that it will support any Ethereum fork token following the Merge. In a blog post on Thursday, Binance said;

“The chain splits into two competing chains and a new token is created. The “ETH” ticker will be used for the Ethereum PoS chain. We will then 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 (approximately at ETH mainnet block height of 15,540,293, or 2022-09-15 00:30 (UTC)). Withdrawals for the forked token will be supported. Further details regarding this distribution will be stated in a separate announcement.

Binance reserves the right to update the treatment of the chain split in a further announcement.

In order to protect Binance users, the forked token will go through the same strict listing review process as Binance does for any other coin/token. Binance does not guarantee any listings as per our internal policy.”

Binance explained in the post that it would have to suspend ETH and ERC-20 token deposits and withdrawals ahead of the Merge to protect user funds. 

The Merge represents the joining of the existing execution layer of Ethereum (the Mainnet we use today) with its new proof-of-stake consensus layer, the Beacon Chain. 

According to the Ethereum team, the Merge eliminates the need for energy-intensive mining and instead secures the network using staked ETH. with the proof of stake protocol, the Ethereum network is expected to be scalable, secure and sustainable. 

Positive Binance reviews ensure that the cryptocurrency exchange further cements its place as the world’s leading digital asset trading platform.

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.