Mainnet Swap
A Mainnet Swap refers to the process when a cryptocurrency moves from one blockchain network to another. Typically, tokens initially exist on a different blockchain from their native one, often because their native blockchain is still under development. The most common scenario involves tokens launching on the Ethereum blockchain (as ERC20 tokens) before migrating to their own network (mainnet) once it's ready.
Understanding the Basics
The Purpose of the Mainnet Swap
A Mainnet Swap is primarily performed for scalability, security, or functionality reasons. When a cryptocurrency’s very own blockchain (mainnet) is complete and ready to function, it must switch from the blockchain it was initially issued on. This new network often boasts features tailored for the cryptocurrency’s specific needs. It also helps the project gain full independence from any other platform.
How a Mainnet Swap Happens
The actual process of a Mainnet Swap differs from one cryptocurrency to another. Here's a simplified three-step process usually followed:
- Announcement: The company behind the cryptocurrency will make a public announcement specifying the mainnet swap date and directions for users to follow.
- Transfer: Users may need to move their tokens from their personal wallets to a supported exchange, where the swap will happen automatically. In some cases, they may have to initiate the swap process themselves.
- Swap: The existing tokens on the old network are locked or burned, and new tokens are issued on the new network at a specific ratio decided by the company.
Risks and Consideration
A Mainnet Swap generally requires users to take action in order to move their assets to the new network. If a holder of the cryptocurrency ignores or isn't aware of a Mainnet Swap, they may lose access to their tokens as they could continue to exist on the now obsolete old network. Thus, it's always important to stay updated and regularly check for any news or updates related to your cryptocurrency holdings.