Tron DAO, the decentralized autonomous organization managing the Tron blockchain, has issued a directive to TRX holders. They have been advised to migrate their BEP2 tokens to the BNB Smart Chain.
This move is in response to the upcoming closure of the BNB Beacon Chain, as announced by the BNB Chain. The BNB Beacon Chain, crucial for staking and governance on the BNB network, is set to sunset in June 2024. As a consequence, assets on the BEP2 and BEP8 protocols are required to be transferred to the BNB Smart Chain or other blockchains to prevent losses. Tron DAO stresses the importance of completing this exchange by May 2024 to avoid any disruptions.
The BNB Chain, a prominent platform in the realm of decentralized smart contracts, is undergoing significant architectural changes. Announced on January 8, 2024, the initiative aims to merge the BNB Beacon Chain with another segment of its network.
This consolidation is part of the BEP333: BNB Chain Fusion proposal, intended to enhance the blockchain’s development efficiency, security, and asset utilization effectiveness. The plan includes a series of steps, starting with the cessation of asset issuance on the Beacon Chain and moving governance and validator management to the BNB Smart Chain.
Furthermore, the roadmap details a transition process where validators and governance modules are migrated to the BNB Smart Chain, incentivizing participants with increased voting power. This transition will culminate in the deactivation of governance and delegation on the Beacon Chain, leading to its retirement and the establishment of a token migration application to assist users in recovering funds.
The fusion of the BNB Beacon Chain and the BNB Smart Chain is aimed at bolstering network security and improving digital asset management. While Bitcoin and BNB holders are unaffected, users with other cryptocurrencies are urged to prepare for the migration. BNB Chain has advised those with non-cross-chain transferable assets to reach out to their token issuers for guidance.
This development coincides with a milestone for the Tron blockchain, which has seen its number of non-zero balance addresses exceed 95 million, surpassing other major layer 1 networks like Cardano and Avalanche in address growth. Additionally, the Total Value Locked (TVL) on the Tron blockchain has exceeded $23.4 billion, showcasing the expanding influence of the TRX ecosystem within the DeFi sector.
