Cryptocurrency exchange Binance is making a number of major changes in the company, especially following the recent hack. One of the major changes is the transition from ERC20 BNB tokens to its native BEP2 BNB tokens, According to the company’s CEO Changpeng “CZ” Zhao.
ERC20 tokens to be burned
As part of the transition, CZ said all ERC20 BNB tokens will be burned. This includes tokens from both cold and hot wallets of the company. they will then be replaced with an equal amount of BEP2 tokens from the creator address to a new BNB cold wallet. This migration has become necessary as Binance launched its own blockchain in April.
Binance’s cryptocurrency BNB was built on the Ethereum blockchain upon which most tokens are built. However, the company launched its own blockchain – the Binance Chain mainnet, on 18 April 2019. The blockchain is designed to also be a platform for decentralized exchanges (DEX). Binance Coin (BNB) was then declared as the native token for the chain and it, therefore, became necessary to migrate it to the new blockchain. Up to the blockchain launch, BNB was the most valuable token on the Ethereum blockchain, having a market cap of $2.95 billion.
Binance Coin (BNB)
Binance Coin which has become the native token for the Binance blockchain is built based on BEP2 standard describes the rules for managing tokens on the Binance blockchain. It was created within Genesis Block and will be used for fees (gas) and staking on Binance Chain. All users who hold ERC20 tokens can deposit them to Binance.com and after the burning will be able to withdraw the new Binance Chain native tokens to their wallets.