BNB Chain to Enable Liquid Staking on BSC

BNB Chain is transitioning its functions from the BNB Beacon Chain to the BNB Smart Chain (BSC) and will enable native liquid staking on BSC.

As part of its transition to relocate the functions of the BNB Beacon Chain to the BNB Smart Chain (BSC), BNB Chain has announced that it will enable native liquid staking on its BNB Smart Chain (BSC).

The earlier chain will undergo this transition as it winds down.In an announcement, BNB Chain said that it will completely decommission the BNB Beacon Chain by June 2024. On the other hand, the firm has stated that it will move its features to the BSC before it reaches its conclusion.

According to BNB Chain, the implementation of liquid staking on BSC would make it possible for ecosystem members to enhance the network’s security while maintaining the liquidity of their assets.

With regard to the launch of the liquid staking function, they has stated that it will take place in either April or May. However, the firm did not provide a particular date for its implementation.

The core development of the team stated that the organization is attempting to streamline the network by transitioning to BSC.

“The implementation aligns with the sunset of the BNB Chain Fusion, streamlining the network, improving efficiency, reducing security risks and matching current technological demands.”

They said that the move is also part of the company’s growth objectives to make the BNB Chain “more attractive to users.” The team confirmed this.

BNB Chain noted that the functionality would allow users to participate in decentralized finance activities without compromising the asset’s utility. This is because they will have liquid-staking tokens that represent their staked cryptocurrency assets.

Additionally, the core development team of the BNB revealed in a statement that holders are able to delegate their BNB accounts. You can proceed directly to the validator or to a liquidity pool, whichever is more convenient for you. This is what 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 highlighted that holders of BNB have the opportunity to acquire liquidity provider tokens when they stake their tokens in the liquidity pool. Various activities within the ecosystem can utilize these tokens.

The BNB Chain development team has stated that the implementation of liquid staking and the optimization of the maximum extractable value (MEV) will occur simultaneously.

The team went on to say that “valuators who have MEV enabled will have the opportunity to increase their staking returns through MEV revenue,” which will ultimately be factored into liquidity staking payouts.