In the optimistic climate of the crypto market, BNB Chain developers, supported by Binance, have announced plans to merge the dual-chain structure of BNB Beacon Chain (BEP2) and BNB Smart Chain (BEP20) into a single blockchain ecosystem. This move aims to streamline operations and enhance user experience on the platform.
According to a January 8 announcement, users are strongly advised to transfer their BEP2 and mini BEP2 assets (BEP8) to the BEP20 ecosystem, maintaining a 1:1 asset ratio. The transfer can be conducted through centralized and decentralized exchanges or via BNB Chain Wallet and other Web3 wallets. A provisional deadline for BNB Chain Fusion is set for April 2024.
Users who fail to bridge their assets by the deadline can still do so later using an old feature, but they will have to wait up to seven days to recover BEP2 assets post-fusion. The recovery feature lacks a user interface and is only accessible through a command line prompt. Developers also warn that BEP2 tokens withdrawn without cross-chain support before the BNB Beacon Chain is disabled will be irrecoverable, leading to irreversible losses.
Binance introduced its native token, BNB, in July 2017. Currently, BEP2 BNB is used for transaction fees to power ecosystem operations, while BEP20 assets possess smart contract functionality similar to ERC-20 assets. The rapid evolution of BSC has made the Beacon Chain burdensome, slowing development iteration and exposing the BNB network to security vulnerabilities.
The developer’s announcement of the merger has raised anticipation about the new ecosystem design that will be offered to users, as they seek to eliminate the need for continuous bridging between the two chains and address security concerns.