BNB Chain Beacon Chain Migration Guide

BNB Chain Fusion is the strategic shift to migrate the functionality of the BNB beacon chain to the BNB Smart Chain (BSC) and replace the BNB beacon chain.

The BNB beacon chain was initially designed as a staking and governance layer to complement the BNB Smart Chain (BSC) by enhancing security and supporting decentralized exchanges (DEX). However, with the development of BSC and changes in the blockchain landscape, including the retirement of the order book-based DEX in BEP151, the BNB beacon chain has become increasingly redundant. Its connection to BSC through cross-chain bridges has introduced development complexity and security vulnerabilities.

Therefore, BNB Chain Fusion is the strategic shift to migrate the functionality of the BNB beacon chain to the BNB Smart Chain (BSC) and replace the BNB beacon chain. This aims to simplify the network, improve efficiency, reduce security risks, and align the architecture of BNB Chain with current technical requirements and future growth.

Why should validators be excited about migrating to BSC?

The transition from the BNB beacon chain to BSC brings several benefits that validators should look forward to:

Simplified BNB Chain Development Process

Migrating to BSC will simplify the development process by integrating work into a single chain. This focused approach will bring faster updates, more powerful features, and a more cohesive development environment.

Optimized Chain Architecture and Security Model

By retiring the BNB beacon chain and integrating its functionality into BSC, the overall architecture of the BNB chain will be simplified. This simplification enhances the security model, reduces vulnerabilities, and makes the network more resilient to attacks.

Implementation of "Proposer Builder Separation"

The current Maximum Extractable Value (MEV) solutions' fragmentation between providers and validators leads to inefficiency and potential centralization. This highlights the need for standardization and an open market to simplify processes and enhance decentralization on the BNB chain. Implementing PBS (Proposer Builder Separation) on BSC will establish a transparent, fair block space market.

Optimization of BNB Chain Staking Ecosystem

The transition to BSC will also optimize the staking ecosystem by combining advanced financial tools like LSDFi with native staking. After rigorous testing by the core development team, BNB Chain has successfully integrated LSDFi functionality. This integration provides validators and delegators with more flexible and efficient staking options, potentially increasing rewards and enhancing overall network participation.

Timeline

Prerequisite Steps
- BE2/BEP8 asset holders should transfer their assets to BSC.
Phase 1 - April 2024: Cease issuance of assets on the BNB beacon chain, transfer validator management and network governance to BSC. Disable atomic swap functionality from April 15, 2024.
Phase 2 - May 2024: Discontinue governance and delegation on the beacon chain, cancel all asset delegations, and return assets to user wallets.
Phase 3 - May 2024: Disconnect cross-chain communication between Beacon Chain and BSC. Stop archiving BNB beacon chain and beacon chain data.
Phase 4 - June 2024: Establish token migration tools to help users reclaim funds stuck on the beacon chain.

For detailed information on the timeline and process, please refer to the BNB Chain Fusion Roadmap.

For Validators

The introduction of native staking on the BNB Smart Chain marks a significant milestone, enabling validators to create and manage directly on the chain. After the Feynman hard fork, validators initially established on the BNB beacon chain need to migrate to the BNB Smart Chain to continue operating.

To migrate validators, you can follow these steps:

Create a new validator

Stake Dapp provides a user-friendly interface for creating new validators on the BNB Smart Chain. Follow the detailed instructions in the validator creation guide to set up a new validator. Properly filling the "identity" field as specified in the guide is crucial for a successful migration.

Migrate stake to the new validator

Once your new validator is active, inform your delegators about the migration. They need to migrate their stake to your new validator to continue supporting you. For comprehensive details on stake migration, please refer to the Stake Migration Guide.

For BNB Delegators

The BNB Chain community has introduced BEP333: BNB Chain Fusion, a significant update that leads to the exit of the BNB beacon chain from the ecosystem. Following the Feynman hard fork, this transition introduces native staking on the BNB Smart Chain. Stakeholders now have the opportunity to migrate their existing delegations to the new native staking system through two primary methods:

Cross-chain redelegation via the BC Delegation Portal
Unstaking, cross-chain transfer, and new delegation

For delegations created in BEP153 format, please refer to this document for the migration process.

Refer to this resource for the complete step-by-step guide.

Why migrate delegations now?

Simple, takes only a few minutes to complete your BNB delegation migration.
Enjoy approximately 40x higher staking APY: If delegators do not migrate, their delegated validators may not be selected as active validators, affecting the APY. Currently, the reward ratio for new validators is higher than that on the BC chain.
Delegators migrating their delegations can now participate in the Airdrop Alliance rewards.

For BEP2 Token Issuers

The introduction of Token Binding is to ensure that a token can circulate on both BC and BSC and determine the total supply.

If a token is bound, it can be transferred between BC and BSC for different use cases. After the final sunset hard fork, cross-chain transfers between BC and BSC will be closed. However, users can still use the token recovery tool to recover bound assets on BSC.
If a token is not bound, after the final sunset hard fork, the assets will no longer be recoverable. Token owners or issuers should take action to bind their valuable tokens.

Please check the tutorial to confirm if the asset supports cross-chain transfers to verify if the token allows cross-chain transfers. If the answer is yes, you do not need to take any action. Otherwise, it is recommended that you deploy BEP20 tokens on BSC and enable cross-chain functionality using the token binding tool. Token issuers are advised to inform asset holders through multiple channels to migrate as soon as possible.

For BEP2 Token Holders

As part of the BEP333 update, the BNB beacon chain is set to retire. All assets must be migrated to the BNB Smart Chain (BSC) before the final sunset in June. Delay may result in irreversible asset loss. Please continue reading for detailed migration steps.

The most valuable BEP2/BEP8 tokens (such as BNB and BTC) can move flexibly between the beacon chain and the BSC network without restrictions. It is strongly recommended that users transfer assets to the BSC network to ensure a smooth, lossless transition and maintain a 1:1 asset ratio. For a complete guide, refer to this tutorial. While there are other methods for asset transfer, such as centralized exchanges or decentralized cross-chain platforms (such as Binance.com and Thorswap), this tutorial does not cover these alternative solutions.