Binance announced that it will support The Merge but won’t disregard Ethereum’s forked tokens. The world’s largest cryptocurrency exchange by volume said it is constantly monitoring the development of “The Merge” and acknowledges that there is a huge possibility that new forked tokens will appear soon.
Binance on PoS from The Merge
In its Notice Regarding the Upcoming Ethereum Merge, Binance said, “it will evaluate the support for distribution and withdrawal of the forked tokens.”
The Ethereum Merge is approaching.
Here's what you need to know if you hold $ETH on #Binance:
🔸Binance will support “The Merge”.
🔸In case of newly forked tokens, we will evaluate and consider support for distribution and withdrawal.View details ⤵️https://t.co/iuQSsXZ7fk
— Binance (@binance) August 10, 2022
“The Merge” is Ethereum’s protocol update that will occur on or around September 19 and would complete the network’s long-awaited transition to a proof-of-stake (PoS) consensus mechanism.
Binance acknowledged that it may back the “merge resistors,” or those who want to keep using proof-of-work (PoW) and launch their own separate network and coin.
“In order to protect Binance users, all forked tokens will go through the same strict listing review process as Binance does for any other coin/token,” the company added.
‘The Merge resistors’
Last week, Chandler Guo, a famous Chinese crypto miner, revealed that he wanted to resist the upgrade and keep a PoW version of Ethereum, which he dubbed ETHPOW.
He previously said his move aims to help the miners continue producing cryptocurrency using the same hardware they have been using since “The Merge” will surely result in Ethereum miners needing specialized hardware “that may suddenly be rendered useless.”
Crypto experts are still doubtful that such a project will have a lot of development and commercial backing. However, major market actors have subsequently indicated that they would be amenable to it.
How ‘The Merge’ works
Instead of being a blockchain based on proof-of-work, “The Merge” will be based on proof-of-stake, eliminating the need for miners. Validators, not miners, will lock the network’s crypto to maintain network security.
It is anticipated that the update would make Ethereum quicker, more scalable, and much more energy efficient. Additionally, proponents of the change assert that the update would assist in curbing the network’s native cryptocurrency, ETH, inflation.