Mainnet Swap: Transitioning to Live Blockchain
Mainnet Swap is the movement of a cryptocurrency project from one blockchain network to another (which in most cases is its own blockchain network.
What is Mainnet Swap?
Mainnet Swap is the transition of a cryptocurrency project from a third-party blockchain network, such as Ethereum, to its native blockchain network. The third-party blockchain network applies when the cryptocurrency project is in the test network phase. Once it moves from the test network phase to the mainnet phase, users receive the native cryptocurrency in exchange for their tokens from the third-party network. For this reason, this process is also called token migration or token swap. Essentially, a token swap in mainnet is an exchange of third-party network tokens for the platform’s native cryptocurrency.
Example of Mainnet Swap.
ELF has been conducted as an ERC-20 token based on Ethereum since 2017. After spending a lot of time testing the security and reliability of their platform, they announced a mainnet swap on September 9, 2021. The network swap is typically a 1:1 swap. Once it completes on the entire blockchain system, the remaining tokens are burned.
Another example of a mainnet swap is BNB (Binance Coin). When Binance Chain was in the test network stage, it used the Ethereum-based BNB ERC-20 token. But after the launch of the main network, holders of ERC-20 BNB tokens were invited to switch to BEP2 BNB coin (Binance’s native coin). The exchange took place on a 1:1 ratio, i.e. 1 BEP2 BNB coin was equal to 1 ERC-20 BNB coin.
When does Mainnet Swap?
Typically, a mainnet swap occurs when a cryptocurrency project moves from one blockchain to another or transfers its tokens from a third-party blockchain to its home chain. But the mainnet swap is not exclusively associated with new blockchains. A project can declare it if it decides to migrate from one protocol to another. An example would be migrating tokens from a Bitcoin-based protocol to the Ethereum network.
The specifics of conducting a network swap vary from project to project. Most projects give users a deadline to migrate tokens. If you don’t, you will end up losing access to your tokens, as they usually burn out after the deadline.
How does the exchange happen?
Depending on the underlying performance characteristics, users can either manually exchange their tokens or leave it up to the platform. For example, Binance allowed users to leave previously issued tokens in their accounts so that the platform could automatically exchange their tokens for native tokens.