- The Ren 2.0 update to the current product (Ren 1.0) could not be backwards compatible.
- Ren 2.0 upgrade is to make Ren an open-source and community-controlled project.
On Thursday, the Ren Protocol team advised users of the Alameda-backed cryptocurrency that they may lose their funds if they did not take quick action.
According to the cross-chain bridge, the Ren 2.0 update to the current product (Ren 1.0) could not be backwards compatible. To avoid “losing them,” Ren advised consumers to promptly burn tokens supplied by their bridge service in exchange for their underlying assets.
In the same way that other bridges do, Ren allows users to deposit a cryptocurrency on its native blockchain (in this case, Bitcoin) in exchange for a tokenized version of that asset (in this case, renBitcoin), which then circulates on Ethereum.
Open-source and Community Controlled
The goal of the Ren 2.0 upgrade is to make Ren an open-source and community-controlled project, while simultaneously breaking all links with the insolvent Alameda Research. Despite the fact that the update was planned long before, the Ren development team has decided to go at a faster clip after Alameda’s bankruptcy declaration last month.
Following the demise of the firm, the Ren development team has been left with barely enough resources to last until the end of the calendar year. Ren said in their statement that they will be ending Ren 1.0 “after 30 days,” making it unable to mint or burn its tokenized assets.
Due to the high probability that the asset would de-peg in the future, MakerDAO has already committed to selling out renBTC as stablecoin collateral. After last month’s events, however, other Bitcoin-pegged tokens like solBTC fell because FTX enabled direct redemptions for the asset.
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