TRON (TRX) Mainnet Launch and Token Migration: Everything You Need to Know

On May 31st, TRON (TRX) will launch its own blockchain (or "Mainnet") and begin its "Odyssey" (v 2.0) phase of development. The countdown clock is currently on display on the TRON Foundation website. In this article, we try to answer the most important questions about TRON's blockchain upgrade and the migration of its tokens to this new blockchain from the current Ethereum blockchain.

What Is Happening on May 31st?

Currently, Tron does not use its own blockchain; instead, it runs on the Ethereum blockchain and its TRX tokens are based on the ERC20 standard. The "Exodus" in Tron's development roadmap started on March 31st, when a test version of Tron's native blockchain ("Testnet") was launched. And on May 31st, it will be time to launch the production version of Tron's native blockchain ("Mainnet").

What Will Happen After the Mainnet Launches?

Starting on June 1st, the Mainnet will undergo intensive testing for the next three weeks. One thing users will be encouraged to help with during this period is testing of the voting functionality. Another is testing of the Tron network wallet. 

What Is Going to Happen to My TRX Tokens?

If your TRX tokens are currently held on a wallet at a crypto exchange such as Bitfinex or Binance, you don't need to do anything; the exchange will take care of migrating your ERC20-based TRX tokens to native TRX tokens (or coins) on June 25th, and these will be available to you on June 26th.

The following exchanges have already promised support for Tron's blockchain upgrade and token migration: 

  • Cayman Islands: Gate.io
  • China: BixinIM
  • Dubai: RightBTC
  • Estonia: Bibox
  • Hong Kong: Bitfinex (with operations center in Taiwan)
  • India: Zebpay 
  • Malta: Binance
  • New Zealand: Cryptopia
  • Singapore: DragonEx (with operations center in Thailand)
  • South Korea: Bithumb; Coinnest; Coinrail; Upbit
  • Taiwan: Bitfinex
  • Ukraine: Liqui Exchange

If, however, your TRX tokens are stored on any other wallet -- for example, a mobile wallet such as Trust, a web-based wallet such as MyEtherWallet, or a hardware wallet such as the Ledger Nano S -- you MUST move your TRX tokens to one of the many crypto exchanges that are supporting Tron's blockchain upgrade and token migration.

According to a blog post titled "Guidance for users after TRON mainnet launch" on 23 May 2018 by the Tron Labs, this must be done before 24 June 2018. However, this advice may be incorrect since there are exchanges that have an earlier deadline.

For example, according to another blog post by Tron Labs titled "DragonEx will support TRON blockchain upgrade and token migration", for the DragonEx exchange, users need to "deposit TRX’s ERC-20 tokens to DragonEx before June 20, 2018 23:59 (UTC+8)."

So, please try to play it really safe and transfer your tokens to one of the crypto exchanges that has promised support for the token migration BEFORE 20 June 2018 00:00 (UTC).

Between 21 June 2018 and 24 June 2018, TRX withdrawals will be suspended on all exchanges.

On 25 June 2018, there will be no TRX deposits/withdrawals allowed on any exchanges.

And finally, on 26 June 2018, since exchanges will have completed token migration by now, there will only be native TRX coins on the Mainnet. TRX deposits and withdrawals will resume. Users will need to withdraw TRX to a wallet if they want to vote. 

Binance Apologizes for Its Role in Justin Sun's Steem Takeover

Leading cryptocurrency exchange Binance has published a letter to the Steem community, apologizing for playing a part in what has been deemed a “hostile takeover” of the cryptocurrency’s blockchain.

In the letter, Binance writes that it has removed the votes that helped Justin Sun take over the Steem blockchain. It reads:

We sincerely apologize for the recent situation involving STEEM, which stemmed from miscommunication about the specifics of the blockchain’s upgrade/hard fork.

The exchange added it “stays neutral and has no interest in on-chain governance beyond the Binance ecosystem,” noting its stance is to support upgrades to blockchains whose cryptocurrencies are listed on its platform.

After noting that it hopes STEEM and TRON will be able to reach a consensus in an efficient manner, the exchange wrote:

If they fail to reach an agreement and it poses potential risks/damages to STEEM users on Binance, we reserve the right to take corresponding actions at the consent of our users.

The cryptocurrency exchange further added that it participates in community voting in the interests of its users, and provides staking services to proof-of-stake blockchains it supports. As such, it will distribute to users who held STEEM on binance at the time of the vote the rewards reaped from the action.

These are going to be released on the STEEM blockchain over a period of 13 weeks and should total 24,692 STEEM, equivalent to around $5,080.

Why Binance is Apologizing

As CryptoGlobe reported, Justin Sun acquired Steemit Inc, the company behind the Steem blockchain’s number one application, Steemit. In response to the acquisition Steem’s witnesses – similar to miners on the Bitcoin blockchain or block producers on EOS – moved to limit Justin Sun’s power on the network through a soft fork.

The soft fork was meant to limit the power of Steemit Inc’s STEEM holdings until the community had clarity on the acquisition, as it could use the alleged 65 million STEEM holdings to influence governance.

In response, however, TRON issued a statement saying it would use the holdings to vote on governance decisions, and said the update was “maliciously structured” and could be deemed “illegal and criminal.” With the help of Binance, Huobi, and the TRON-owned Poloniex exchange, it ousted Steem’s witnesses and replaced them with accounts seemingly controlled by TRON.

Justin Sun defended the move on social media, saying the STEEM blockchain was attacked by hackers, who froze the 65 million STEEM tokens Steemit owned. The community rallied, and shortly after Binance CEO Changpeng Zhao reacted on social media saying Binance would remove its vote based on the community’s feedback.

Featured image by Álvaro Serrano on Unsplash.