When the network is split, users will be credited with the assets of the hard fork at a 1:1 ratio based on the snapshot of the balance at the time of the second phase of the update

Binance will support tokens of Ethereum hard fork

25.08.2022 - 15:30


3 min

What’s new? Cryptocurrency exchange Binance has presented two scenarios for ETH coins in connection with the upcoming Ethereum network upgrade, which will see the consensus algorithm change from Proof of Work (PoW) to Proof of Stake (PoS). If there is no algorithm change in the existing Ethereum network (to PoW) following the upgrade, the platform will resume depositing and withdrawing ETH and ERC-20 tokens as soon as possible. Providing a split into two blockchains and a successful algorithm change, the ticker “ETH” will be used for the network on PoS, and users will also be credited with 1:1 hard fork tokens based on a snapshot of the balance at the time of the second phase of the upgrade, called Paris.

The Binance blog

What else does the blog say? Binance will suspend deposits and withdrawals of ETH and ERC-20 tokens on September 6 at the time of the Bellatrix upgrade and on September 15 during the second phase of the upgrade, Paris. The platform team urged customers to make sure that ETH and ERC-20 transfers to Binance are fully processed by that time.

According to new information in the PoS transition roadmap, the second phase of the upgrade may begin earlier than the originally anticipated date — on September 10, not September 15.

Previously, Binance said that it allowed the listing of potential Ethereum hard forks, with all applications for asset placement on the platform to be considered individually, just as in the case of any other tokens.

On August 7, crypto exchange Poloniex launched trading of Ethereum hard fork tokens. Customers can exchange ETH at a ratio of 1:1 to ETHS or ETHW.

The BitMEX exchange also intends to launch trading of tokens of the PoW hard fork. If Ethereum is split, the platform will offer trading in linear futures margin contracts on ETHPoW with collateral in USDT stablecoins.

On August 23, the Bitfinex exchange also launched trading of potential hard fork tokens. Customers can create assets in exchange for an equivalent amount in ETH, reverse conversion is available at any time.

What is known about the Ethereum upgrade? Due to the algorithm change from PoW to PoS, the way coins are earned on the network will change from mining to staking. It is also possible to split into two networks, one of which will continue to run on PoW. In August, developers published a document refuting misconceptions about the upcoming upgrade.

See GetBlock Magazine's article on how the market reacted to the final stage before the global network upgrade.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy