Here is what Binance will do during ‘The Merge’! On August 25th, Binance updated the community on what they will do during ‘The Merge’ via Twitter.
On August 25th, Binance informed the community of what they will do during ‘The Merge’ next month on Twitter. Binance will take some steps to reduce trading risks and keep user funds safe.
#Ethereum will migrate to a PoS chain at approximately 12:30am UTC on September 15, 2022.
Ahead of any possible ramification from this event, #Binance is taking steps to reduce trading risks and to keep user funds SAFU.
🧵 on some things to note about our plans for The Merge.
— Binance (@binance) August 25, 2022
To add the information, ‘The Merge’ is an Ethereum upgrade from Proof-of-Work (PoW) to Proof-of-Stake (PoS). There are two phases for ‘The Merge’ to complete, Bellatrix and Paris.
Binance will temporarily pause ETH and ERC-20 token deposits and withdrawals two times. It will approximately happen for the Bellatrix upgrade on September 6th and the Paris upgrade on September 15th. Binance will give an update when it is good to resume the activity.
Binance will handle all the technical requirements during the upgrades and ‘The Merge’. Also, ETH and ERC-20 token holders do not need to do anything during the event.
In addition to the announcement, Binance has identified two scenarios after ‘The Merge’. It will help the community to prepare for any possibilities.
Binance stated two potential scenarios:
“1. No fork, no new token generated. In this case, Binance will resume ETH and ERC-20 token deposits and withdrawals as soon as possible; 2. A fork leads to 2 competing chains, and a new token is created. The ETH ticker will refer to the Ethereum PoS chain. Users will be credited the forked token based on the snapshot of their ETH balances.”
There will be another update from Binance regarding these scenarios later.
The latest announcement Binance is similar to Bitfinex, which also provides scenarios for the community to prepare for the event in September.