Binance will temporarily halt ETH deposits and withdrawals amid “The Merge”


In order to facilitate Ethereum’s transition to the proof-of-stake (PoS) architecture, Binance, the biggest cryptocurrency exchange by trading volume, has announced that it would halt deposits and withdrawals of ETH and ERC-20 during “The Merge.”

On Thursday, Binance announced that it would update its “Bellatrix” consensus layer on September 6 and its “Paris” execution layer on September 15. Binance will reopen deposits and withdrawals as quickly as feasible if no new token is issued.

One alternative is for the chain to divide in two, each with its own token. Then, using the ETH balances captured before the Paris update, Binance will distribute the forked token from the minority chain “at a ratio of 1:1” to the customers’ accounts.

Binance has said that any branched tokens would be subject to the same listing review procedure as any other token.

The Merge intends to convert the Ethereum blockchain from its present proof-of-work (PoW) method to a proof-of-stake (PoS) model, which is quicker, more energy-efficient, and more secure to grow applications.

According to the Ethereum Foundation, the mainnet merging will be divided into two stages: the Bellatrix upgrade and the Paris upgrade. The Paris upgrade will transition the Ethereum network from proof-of-work to proof-of-stake, while the Bellatrix upgrade will get Ethereum’s consensus layer into a position where it is ready to merge.

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