MerchDAO is ready to deploy on Binance Smart Chain
Binance Smart Chain is becoming the blockchain of choice for DeFi projects, and for a good reason: it offers fast transactions and very low fees, something that’s crucial for an NFT project like MerchDAO. It’s not a full migration, though, because we’ll support both blockchains in equal measure.
Would you buy a unique or limited-edition t-shirt for $15? Probably yes. And if it’s accompanied by an NFT token that verifies its authenticity, that’s even better. But would you buy the same t-shirt for $15 if the transaction fee is also $15? Many wouldn’t — and that’s exactly the problem with Ethereum-based NFTs.
As of May 6, the average Ethereum gas fee was $12.8 when transferring ETH. A transfer of ERC-20 tokens requires three times more gas, so a transaction with tokens is even more expensive.
Like all Ethereum users, we hope that gas fees can be soon brought under control. Partly this has been done already thanks to the recent Berlin hard fork: the average fee dropped from $30 to under $15. But it’s still a far cry from the $0.20 average fee we had a year ago. As the transition to Eth 2.0 progresses, we might eventually see gas fees below $1 again, but nobody knows when.
Luckily, we have an alternative: Binance Smart Chain, or BSC. This blockchain was created by Binance specifically for dApps, especially DeFi projects, and it’s both fast and cheap. According to DeFi Station, the total value locked in BSC is almost $50 billion, while 3 months ago it was less than $2 billion. There’s almost $10 billion locked in PancakeSwap alone.
Major DeFi protocols like 1inch and CREAM have already deployed on BSC, and now it’s the turn of MerchDAO. The migration to BSC will allow our users to buy limited-edition and unique merchandise with minimal fees, to propose their own designs, and to participate in the DAO without worrying about the costs of voting.
But when we talk about migration, we don’t mean leaving Ethereum for good. It’s still the biggest dApp platform, and it has a big advantage over Binance Smart Chain: decentralization. BSC is so fast and cheap partly because it has a very limited number of validators, and they are all chosen among the validating nodes of Binance Chain. BSC is essentially controlled by Binance. And even though Binance is the world’s biggest centralized exchange, it’s not invulnerable. It can be hacked, it can be closed down by regulators — anything can happen.
BSC gives MerchDAO speed and efficiency, while Ethereum guarantees decentralization and long-term survival. Together these two blockchains offer the best of both worlds to all $MRCH holders.
We’ll let you know once the migration is complete and you can start using MerchDAO on Binance Smart Chain. If you’d like to be the first to learn the news, join our official Telegram channel. More exciting updates are coming — stay tuned!
Telegram group: https://t.me/MerchDAO
Telegram channel: https://t.me/merchdao_news