Binance will suspend deposits and withdrawals for ETH and ERC-20 during The Merge
Binance, the world’s largest cryptocurrency exchange by trading volume, said it will suspend deposits and withdrawals for ETH and ERC-20 during “The Merge,” in support of Ethereum’s migration to the proof-of-stake (PoS) model.
Binance to suspend ETH deposits, withdrawals during “The Merge”
Binance said on Thursday that it will do so on Sept. 6 for the “Bellatrix” consensus layer upgrade and Sept. 15 for the “Paris” execution layer upgrade. The exchange teased out two possible scenarios following the Merge. Scenario A: If no new token is created, Binance will then reopen deposits and withdrawals as soon as possible.
Another scenario would be the chain being split into two competing chains with a new token created. Binance will then credit the users’ accounts with the forked token from the minority chain “at a ratio of 1:1” based on the snapshot of ETH balances before the Paris upgrade.
In an event that a new token is created, Binance said the forked token will go through the same listing review process.
The Merge intends to shift the Ethereum blockchain from its current proof-of-work (PoW) mechanism to a PoS model, a faster, more energy efficient, more secure way to scale projects. The Ethereum Foundation said that the mainnet merge will occur in two steps, the Bellatrix and Paris upgrades. The Bellatrix upgrade brings Ethereum’s consensus layer into a state ready to merge, and the Paris upgrade will switch the network from PoW to PoS.
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