Binance has been on a mission over the last few years to become the number one cryptocurrency exchange and token ecosystem in the world. The Binance Launchpad IEO ecosystem has helped projects raise millions in funding, and the BNB token has soared in value. As part of its grand plan, Binance has been working on creating its own decentralized exchange (DEX) built on top of a blockchain network powered by its BNB token. However, in order to launch the DEX Binance was required to burn its ERC-20 BNB tokens – an act it completed earlier this week. As the final token was burnt, it marked the moment the BNB blockchain was launched with BEP-2 tokens.
Say Hello to the BNB Mainnet
Changpeng Zhao (CZ) promised to launch the BNB mainnet towards the end of April 2019, and he has stuck to his promise. The first 5 million BNB BEP-2 tokens were sent to a Binance wallet, and the equivalent in ERC-20 tokens were burnt. This kicked off the process of shifting over to the BNB mainnet, and users are encouraged to swap their ERC-20 tokens for BEP-2 tokens before the end of July 2019. In order to convert tokens, all a user must do is deposit them into the Binance exchange. Upon withdrawal, they will be converted automatically into BEP-2 tokens.
Not a True DEX
While the BNB mainnet launch signals the beginning of the Binance DEX, it’s not a true DEX in the way we currently know DEXs. On the testnet, the Binance DEX had 11 nodes for validation purposes – all of which belonged to Binance. Unless the mainnet DEX shakes things up and adds more external nodes, it will remain a semi-decentralized exchange. While this might put some people off using the Binance DEX for the time being, it will provide a certain level of insurance and support to newcomers to the crypto world. As Binance has control over the validating nodes, it may be possible to correct any errors made in the trading process.
BNB is Booming
On the news of the BNB mainnet launch, BNB saw close to double-digit gains in the space of a few hours. This coupled with the new Binance Launchpad lottery rules has helped BNB standout as one of the crypto market’s top performers so far this year. It’s certainly leading the way in the current bullish market that we are seeing, and it’s only going to climb further as more ERC-20 tokens are burned.
It’s only a matter of time before the BNB mainnet is fully populated with native BEP-2 tokens and the ERC-20 tokens are a distant memory. The Binance DEX is a huge stepping stone for the BNB token, and will help its value increase dramatically. If you’re not holding BNB, it’s well worth getting some!