BNB Chain announced that users can now stake their BNB tokens directly on the BNB Smart Chain (BSC), which is a key step in moving the functionalities of the BNB Beacon Chain over to BSC as the latter takes over.
In an announcement sent to CryptoMoon, BNB Chain noted that the BNB Beacon Chain will be completely shut down by June 2024. However, the company said it will transfer its features to the BSC before it closes.
On BNB Chain, it was announced that allowing liquid staking on BSC empowers network contributors to ensure security while maintaining the flexibility of their asset holdings.
The organization hasn’t announced a exact date yet for launching the liquid staking feature on BNB Chain, but they have indicated that it is expected to be released some time between April and May.
The BNB Chain core developers explained to CryptoMoon that their transition to Binance Smart Chain (BSC) aims to simplify and improve network operations. In simpler terms, they’re working on making the network more efficient.
“The implementation aligns with the sunset of the BNB Chain Fusion, streamlining the network, improving efficiency, reducing security risks and matching current technological demands.”
The team mentioned that this action aligns with the company’s expansion strategies to enhance the appeal of the BNB Chain for users.
Users on BNB Chain can participate in decentralized finance (DeFi) actions while retaining the use of their original cryptocurrency assets, thanks to the new feature providing them with staking tokens as a representation.
The BNB Chain’s core development team explained to CryptoMoon that BNB token holders have the option to assign their tokens either to a liquidity pool or directly to validators. This allows for greater participation in the network’s operations and potential rewards.
“Liquidity staking not only rewards BNB stakers but also enhances security for the BNB Chain network. It offers BNB holders increased flexibility in staking their assets and more options for staking BNB.”
When BNB token owners deposit their tokens into the liquidity pool as specified by the team, they will be rewarded with provider tokens. These tokens can then be utilized for various functions within the ecosystem.
The development team has announced that they will introduce liquid staking and MEV optimization for the BNB Chain as a single release.
Validators using MEV (Minimum Exchange Value) can enhance their staking earnings by collecting extra fees on trades, and these additional revenues will eventually influence the total rewards given out in Liquidity Staking.
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2024-04-25 13:07