BNB Chain, the blockchain ecosystem known for its popular BNB Smart Chain (BSC), is set to undergo a significant upgrade on July 14, 2024, with the BC Fusion Second Sunset Fork. This update aims to simplify the network architecture, improve efficiency, and enhance security by merging functionalities from the BNB Beacon Chain into BSC.
The BC Fusion represents a strategic shift for BNB Chain, consolidating functionalities onto a single, robust platform – the BNB Smart Chain. This streamlining effort promises a more efficient and secure infrastructure for users and developers within the BNB ecosystem.
Action Required for Stakeholders
The upcoming fork necessitates action from various stakeholders within the BNB Chain community:
- BNB/BEP2 Asset Holders: Users holding BNB or BEP2/BEP8 tokens on the Beacon Chain must migrate their assets to BSC before August 15th, 2024. Failure to do so will render these assets immobile, requiring a complex recovery process. More information on the migration process can be found on the BNB Chain website.
- BNB Stakers: Staked BNB needs to be transferred to the new native staking system on BSC. The migration process involves cross-chain redelegation or a combination of undelegation, cross-chain transfer, and re-delegation on BSC. A detailed guide outlining these steps is available for stakers.
- Full Node Operators: Operators running validator nodes need to upgrade their software to version 10.10.22. This upgrade ensures compatibility with the new network configuration after the fork. The upgrade process involves downloading new software and configuration files, followed by a restart of the node software.
Governance and MEV Enhancements
The BC Fusion also introduces an improved governance model for BNB Chain. This update aims to streamline the governance process and encourage broader participation. Key changes include:
- Limiting proposal submissions to users with a minimum stake of 200 BNB.
- Adjusting the staking redelegation mechanism to significantly reduce cross-chain redelegation costs to around $0.6.
Furthermore, the upgrade implements Proposer-Builder Separation (PBS) on BSC. This technical advancement aims to improve the overall efficiency and decentralization of block production on the network. Benefits of PBS include:
- Standardization of communication between block builders and validators.
- Outsourcing block building to specialized entities for increased efficiency.
- A simplified fee structure based on gas fees.
- Enhanced block production efficiency while promoting fairer distribution of MEV (Maximal Extractable Value) capture.
About BNB Chain
BNB Chain is a community-driven blockchain ecosystem committed to fostering Web3 adoption. It encompasses a suite of interconnected blockchain solutions:
- BNB Smart Chain (BSC): A secure and cost-effective DeFi hub, currently boasting the lowest gas fees among leading EVM-compatible Layer 1 blockchains. It also serves as the governance chain for the entire BNB Chain ecosystem.
- opBNB: A high-speed and low-cost Layer 2 scaling solution offering rapid transaction processing and minimal gas fees.
- BNB Greenfield: A decentralized storage solution designed to cater to the data storage needs of the ecosystem and empower users to establish their own data marketplaces.
Security remains a top priority for BNB Chain. The AvengerDAO community actively safeguards users, while Red Alarm functions as a real-time risk scanner for decentralized applications (DApps) built on the platform. Additionally, the Builder Support Program offers financial and ecosystem-based incentives to attract developers and foster a thriving BNB Chain ecosystem.
The BC Fusion Second Sunset Fork signifies a significant step forward for BNB Chain. By consolidating functionalities and implementing innovative technical advancements, BNB Chain positions itself for continued growth and leadership in the ever-evolving blockchain landscape.
