Binance Announces Plans To Give Users Tokens That May Emerge From The Merge

Binance, a well-known cryptocurrency exchange, has announced plans to credit users’ accounts with any tokens created during the Ethereum Merge.

The Merge, a popular event involving the transition of the Ethereum network from Proof-of-Work to Proof-of-Stake, is expected to take place between 2022-09-10 and 2022-09-20,

A new token may be created during the hard fork, and some exchanges, such as Binance, have announced plans to incorporate mechanisms to hedge various risks, such as trading risks.

Binance has stated that when the event occurs, it intends to ensure the safety of its user funds.

To achieve this, Binance has stated that it intends to “suspend deposits and withdrawals for ETH and ERC-20 tokens at approximately:

2022-09-06 11:00 (UTC) for the Bellatrix consensus layer upgrade

2022-09-15 00:00 (UTC) for the Paris execution layer upgrade. ”

One of two scenarios is thought to be possible.

First, no new tokens may be created.

If this happens, the exchange plans to accept deposits and withdrawals of the suspended tokens.

Another scenario depicted in the announcement is that two chains may be created after the fork, resulting in multiple tokens. If this occurs, the announcement states that “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)).”