In an important development for TUSD holders, the TrueUSD team has issued an urgent warning to its users. The BNB Beacon Chain, part of the BNB Chain ecosystem, will be decommissioned at the end of June. This move will trigger immediate action from holders of BEP2-TUSD (TUSDB) tokens as these assets will be removed from the chain simultaneously with the closure. To avoid potential asset loss, TUSD urges holders to convert their BEP2-TUSD to other network standards of TUSD tokens via two methods.
Conversion options for BEP2-TUSD holders
TUSD has outlined two primary routes for holders to convert their BEP2-TUSD tokens, each with its different procedures and deadlines.
Option one: conversion via Binance
The TUSD team recommends the first option, which uses the Binance platform. Currently, Binance accepts deposits of BEP2-TUSD tokens. This conversion process is available until March 31, after which the option is invalid. After users deposit tokens on Binance, they can start trading or explore other Earn products.
🚨Attention BEP2-TUSD holders!
🔐Act now to protect your assets affected by @BNBChain’s activities! Explore your options and secure your #TUSD in our latest Medium article.
👇More details: https://t.co/QpPOJfacKx
— TrueUSD (@tusdio) February 6, 2024
The process is relatively simple and does not require any additional action after the deposit, unless you select the TUSD token from a different network standard upon withdrawal. Binance supports TUSD tokens that conform to the ERC20, BEP20, and TRC20 standards, giving users a variety of options.
Option two: Redemption through TUSD’s official website
The second option involves direct redemption through the official TUSD website. Since BEP2-TUSD is a native token issued by TUSD, holders have the right to redeem their tokens directly.
This option is available until May 31, after which it is no longer valid. To use this method, users must have a registered account with TUSD and have gone through the KYC verification process. The redemption process is facilitated through the official TUSD website.
TUSD stablecoin has been experiencing a lot of depegging lately. In January, stablecoin TrueUSD, associated with crypto figure Justin Sun, dipped below its $1 mark. This downturn follows incidents where holders reportedly exchanged significant amounts of TUSD for rival stablecoin Tether. The noticeable decline in TUSD’s value started around January 15 at 11:00 UTC, with its value dropping to as low as $0.984 by 11:15 PM.
On January 10, reports surfaced indicating challenges for TrueUSD in providing up-to-date attestations of its reserves, raising concerns that the stablecoin may not be fully backed by sufficient collateral.
BNB chain to replace the beacon chain with BEP333
The BNB Chain, a decentralized smart contract network, announced its intention to phase out the Beacon Chain and introduce the BEP333. A January 8 blog post describes that BEP333, also called the BNB Chain Fusion, aims to increase security and improve the efficiency of asset use in the chain.
The BNB Beacon Chain, currently a key part of the network, focuses on staking and governance activities. The introduction of BEP333 aims to facilitate a seamless transition from the BNB Chain’s existing dual-chain architecture to a more streamlined single-chain structure.
In light of these changes, BNB Keten has drawn up specific guidelines for its users. In particular, the statement reassures holders of and that there is no need for them to transfer their assets during this transition. However, this will result in multiple coins being removed from the Beacon chain, resulting in monetary loss if users do not take the appropriate action.
The blog clarifies that users who miss the initial transition period will have the option to use the BEP299 Token Migration. This feature provides users with a reliable and decentralized method to retrieve their assets on the BSC after the Beacon Chain ceases operations.