Coinspeaker
BNB Chain to Move Native Liquid Staking Feature to BSC
BNB Chain is transitioning from the BNB Beacon Chain (billed to be completely shut down by June 2024) to the BNB Smart Chain (BSC). However, it has revealed plans to move its features to the new chain before the old one closes.
One of the features that BNB Chain will enable on BSC is native liquid staking. According to the organization, this will enable ecosystem participants to secure the network while also keeping the liquidity of their assets.
As of publication, no official date has been set for the rollout of the feature. However, BNB Chain can confirm that it should happen somewhere between April and May.
BNB Chain Eyes Network Streamlining, Efficiency, and Growth Among Other Things
In a note to Cointelegraph, the core developers have explained the migration to BSC as an attempt to streamline the network. They said in a statement:
“The implementation aligns with the sunset of the BNB Chain Fusion, streamlining the network, improving efficiency, reducing security risks and matching current technological demands.”
Furthermore, the team claimed that the transition will undoubtedly portray the BNB Chain to users in a new light. That is, it will become more attractive to customers, ultimately helping the company’s growth plans, they added.
As the team explained, the liquid staking feature makes it so that users can engage in decentralized finance activities in quite the unusual way. They said that users do not necessarily have to sacrifice their asset’s utility as they will have liquid staking tokens in place of their staked crypto assets. Holders can choose between delegating their BNB to a liquidity pool or directly to the validator.
The team also mentioned that BNB stakers would not only enjoy rewards on the staking activities. They said that they also get to benefit from the enhanced security of the BNB Chain network while also having access to improved flexibility in terms of staking. That is, BNB holders now have more options to stake their assets.
According to the development team, there is another interesting update about the upcoming rollout. The liquid staking feature will be rolled out alongside the maximum extractable value (MEV) optimization for the BNB Chain at the same time. On the MEV, the team said:
“Validators with MEV enabled will have the opportunity to boost their staking returns through MEV revenue, which will ultimately be factored into Liquidity Staking rewards.”
As the phase-out period continues, users are advised to stay updated through official announcement channels for any updates or additional details.
