Foresight News reported that cryptocurrency exchange Binance has released an official announcement regarding its operational plans for the upcoming Ethereum Merge. The exchange will suspend deposits and withdrawals on the Ethereum network (ERC-20) approximately one hour before the Merge is expected to occur. This suspension is scheduled to begin around 08:30 on September 15, 2022.
Should a hard fork occur and result in a new blockchain, the resulting Proof-of-Work (PoW) mainnet and its forked token will be identified by the ticker ETHW. If the ETHW chain demonstrates stability and persists, Binance has committed to supporting all technical requirements involved. The exchange will then credit eligible user accounts with the forked token, ETHW, on a 1:1 basis, corresponding to the amount of ETH and WETH held in their Binance accounts at the time of the snapshot. Specific details regarding the distribution process will be communicated in a follow-up announcement.
Additionally, starting from 08:00 on September 14, 2022, Binance will suspend deposit and withdrawal services for Wrapped Ether (WETH) on the ERC-20 network. It is important to note that any WETH deposits made to the Ethereum network (ERC-20) during this suspension period will not be credited to user accounts. Crucially, users who deposit WETH during this window will not be eligible to receive any potential forked tokens should a hard fork materialize. Furthermore, Binance has temporarily halted the conversion of WETH to ETH. This service will remain paused until the Merge is successfully completed and the network is deemed stable.
Understanding the Ethereum Merge and Potential Fork
The Ethereum Merge represents a significant milestone in the blockchain's history, transitioning its consensus mechanism from Proof-of-Work (PoW) to Proof-of-Stake (PoS). This upgrade is designed to improve the network's scalability, security, and energy efficiency. However, such a fundamental change can lead to community disagreement, potentially resulting in a hard fork where the original PoW chain continues to operate separately.
What Is a Hard Fork?
A hard fork is a permanent divergence from the previous version of a blockchain. Nodes running previous versions will no longer be accepted by the newest version. This essentially creates a split, resulting in two separate networks: one that follows the new set of rules (the post-Merge PoS chain) and one that continues operating under the old rules (a potential PoW chain).
How to Prepare Your Assets
For users holding Ethereum-based assets, understanding exchange policies is crucial during significant network events. Binance's announcement provides clear guidance on how they will handle the technical process, aiming to minimize user disruption.
- Snapshot Timing: The eligibility for any forked tokens (ETHW) will be determined based on a snapshot of user balances held on Binance. The exact time of this snapshot is typically aligned with the block height of the fork.
- Suspended Services: Be aware of the precise times when deposit, withdrawal, and conversion services will be paused. Conducting any necessary transactions well before these deadlines is advisable to avoid complications.
- Post-Merge Stability: Services will remain paused for a period after the Merge to allow the network to stabilize and for the exchange to ensure the security of all funds.
Managing your crypto assets during major upgrades requires reliable information. You can explore more strategies for safeguarding your investments during volatile network events.
Frequently Asked Questions
What happens if I have ETH on Binance during the Merge?
If you hold ETH in your Binance spot wallet at the time of the snapshot, and a hard fork successfully creates a new chain (ETHW), Binance will credit your account with the corresponding ETHW tokens on a 1:1 ratio after the new network is stable.
Why is Binance pausing deposits and withdrawals?
The pause is a standard security measure. It allows the exchange to ensure the integrity of the snapshot for the token distribution and to safeguard user funds during a period of high network uncertainty and potential chain reorganization.
Am I eligible for the forked token if I deposit ETH after the service suspension?
No. Any deposits of ETH or WETH made after Binance suspends services will not be included in the snapshot and will therefore not be eligible for any potential forked tokens like ETHW.
What is the difference between ETH and WETH?
WETH is "Wrapped Ether," which is an ERC-20 token representing Ether 1:1. Standard ETH is not an ERC-20 token. For the purposes of the fork snapshot, Binance is considering both ETH and WETH (on the ERC-20 network) for eligibility.
When will trading for ETHW begin on Binance?
Binance has not announced a date for ETHW trading. The listing of ETHW for trading will depend on the stability of the forked chain and the results of their internal review process. An announcement will be made at a later time.
Should I move my ETH to a private wallet before the Merge?
This depends on your technical expertise. Holding funds on an exchange simplifies the process of receiving potential fork tokens. Managing them in a private wallet requires you to safely interact with the new chain to claim tokens, which carries its own risks. Always get advanced methods for managing crypto assets from trusted sources.