Reported by Cointelegraph, BNB Chain said it will enable native liquid staking on its BNB Smart Chain (BSC) as part of its shift to migrate the BNB Beacon Chain’s functions to BSC as the former is wound down.
BNB Beacon Chain will be completely shut down by June 2024. However, the company said it will transfer its features to the BSC before it closes.
BNB Chain said that enabling liquid staking on BSC will allow ecosystem participants to secure the network while keeping the liquidity of their assets.
While the organization did not give a specific date for the rollout of the liquid staking feature, BNB Chain said it will happen in April or May.
The BNB Chain core development team told Cointelegraph that the move to BSC is the organization’s attempt to streamline the network. They said:
“The implementation aligns with the sunset of the BNB Chain Fusion, streamlining the network, improving efficiency, reducing security risks and matching current technological demands.”
The team added that the move is also a part of the company’s growth plans to make the BNB Chain “more attractive to users.”
BNB Chain explained that with the feature, users can engage in decentralized finance activities without sacrificing the asset’s utility because they will have liquid staking tokens representing their staked crypto assets.
Holders can delegate their BNB to a liquidity pool or directly to the validator. They said:
“Liquidity staking not only rewards BNB stakers but also enhances security for the BNB Chain network. It offers BNB holders increased flexibility in staking their assets and more options for staking BNB.”
The team explained that when BNB holders stake their tokens in the liquidity pool, they can receive liquidity provider tokens, which they can use in many activities within the ecosystem.
