Mainnet Swap

A Mainnet Swap is an essential process in the world of blockchain and cryptocurrencies. It refers to the transfer of a cryptocurrency project from a third-party blockchain network, such as Ethereum, to its native blockchain network. During the initial stages of a cryptocurrency project, developers often use third-party networks like Ethereum’s testnet to build and test their platforms. However, once the project is ready for prime time, it moves to the mainnet phase, where users can exchange their third-party tokens for the platform’s native cryptocurrency.

A mainnet swap is also known as a token migration or token swap, as it involves exchanging third-party tokens for the project’s native tokens. This process ensures that users can benefit from the full functionality and features offered by the project’s native blockchain network.

What is Exploring Mainnet Swap in Detail?

Let’s take a closer look at how a mainnet swap works. One example is ELF (a token based on Ethereum’s ERC-20 standard) which has been in circulation since 2017. After extensive testing and development, ELF announced its mainnet swap on September 9, 2021. During this swap, ELF token holders could exchange their ERC-20 ELF tokens for the native ELF coins on the newly launched mainnet. The swap typically follows a 1:1 ratio, meaning that for every ERC-20 ELF token swapped, the user would receive one native ELF coin. Once the swap process is complete, any remaining ERC-20 tokens are usually burned to maintain the integrity of the ecosystem.

Another notable example of a mainnet swap is Binance Coin (BNB). During the testnet phase of Binance Chain, the platform used an ERC-20 BNB token based on Ethereum. However, when Binance Chain went live, BNB token holders were encouraged to migrate to BEP2 BNB coins, which are the native coins of Binance Chain. This swap was also conducted at a 1:1 ratio, with 1 BEP2 BNB coin being equivalent to 1 ERC-20 BNB token.

When does a Mainnet Swap occur?

A mainnet swap typically occurs when a cryptocurrency project transitions from one blockchain to another or when it migrates its tokens from a third-party blockchain to its native chain. However, mainnet swaps are not limited to new blockchains. Projects may also choose to undergo a mainnet swap if they decide to move from one protocol to another. For example, tokens could be migrated from a Bitcoin-based protocol to the Ethereum network.

The specific execution details of a mainnet swap vary from project to project. Generally, projects set a deadline for token migration, and failure to meet this deadline may result in the loss of access to the tokens, as they are often burned after the specified timeframe.

What is the Swap Process conducted?

The swap process can be conducted either manually by the users or automatically through the platform, depending on the features provided by the project. Some projects allow users to keep their existing tokens in their accounts and automatically perform the swap on their behalf, simplifying the process for users.

For instance, Binance, one of the largest cryptocurrency exchanges, provided users with the option to hold their ERC-20 BNB tokens in their Binance accounts. When the mainnet swap occurred, Binance automatically converted the tokens to BEP2 BNB coins for the users, ensuring a seamless transition without requiring any additional steps.

On the other hand, some projects require users to follow specific instructions to manually conduct the swap. This may involve sending their third-party tokens to a designated smart contract address and receiving the native tokens in return.

It is crucial for users to stay updated and informed about mainnet swaps and follow the instructions provided by the project to ensure a smooth and successful token migration process. Keeping tokens on a supported exchange or wallet can also simplify the swap process, as these platforms often handle the technical aspects on behalf of the users.

What is the conclusion?

In summary, a mainnet swap is an important milestone for a cryptocurrency project as it represents the transition from a third-party blockchain network to the project’s own native blockchain network. It allows users to exchange their third-party tokens for the native tokens, enabling them to leverage the full potential of the project’s platform. Mainnet swaps are conducted at specific ratios, with any remaining tokens usually burned to maintain the integrity of the ecosystem. It is essential for users to follow the project’s instructions and stay updated to ensure a successful token migration process.