- Chain swap of assets from the existing blockchain to another blockchain.
- 1.6 billion USDT undergoes a conversion from TRC20 to ERC20.
Tether made an announcement of coordinating with Binance to perform a chain swap. This is basically a conversion process of assets from the existing blockchain to another blockchain. Tether’s announcement had details of tokens in Tron shifted to Ethereum.
In few minutes Tether will coordinate with Binance to perform a chain swap, converting from Tron to Ethereum ERC20, for 1.6B USDt.
— Tether (@Tether_to) March 4, 2023
The #tether total supply will not change during this process.
Learn more about chain swaps ⬇️https://t.co/abfgnELSvi
The number of tokens present in Tron is 1.6 billion USDT, all these will undergo a conversion from TRC20 to ERC20. Both the token are identical except for the network of origin.
TRC20 is derived from the Tron blockchain, whereas ERC20 is derived by Tether on the Ethereum blockchain. The difference raise when the conversion or gas fees come into play. And also in the duration for completing a transaction.
Though the community is clueless about the conversion process. The reasons stated by the field experts are proposals put forward by the users of the assets, more requirements of funds, and so on.
If the treasury wallet’s capacity is surpassed by the requirement, the network may follow such steps. Additionally, the tweet also mentions the stability in the count of the total supply. As the conversion process undergoes both minting and burning mechanisms.
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