What is a Mainnet Swap?
A Mainnet Swap is the process through which a cryptocurrency project moves from one blockchain network to another—typically from a third-party platform like Ethereum to its own native blockchain.
During this transition, the project's original tokens are gradually replaced with new coins that operate on the newly launched network.
All blockchain activity, including transaction validation and token operations, is migrated to the new infrastructure.
This milestone is essential for projects that require custom features, greater control, or unique consensus mechanisms that are not possible on the previous host blockchain.
A mainnet swap doesn't always involve launching a brand-new blockchain; it can also occur when a project moves from one existing protocol to another to solve technical limitations—like Storj, which migrated from a Bitcoin-based protocol to Ethereum to improve scalability.
Why Projects Choose to Do a Mainnet Swap
Projects opt for a mainnet swap to gain greater control, independence, and technical flexibility—moving beyond the constraints of third-party platforms.
Autonomy: The most prominent motivation for a mainnet swap is gaining independence. Operating on a native blockchain allows developers full control over critical aspects such as transaction fees, block times, and network security.
Customization: New blockchains can be tailored to support innovative features specific to the project's goals. Custom consensus algorithms or enhanced scalability solutions can be implemented to better serve the community.
What is the Impact on Holders?
For token holders, a mainnet swap often involves significant changes. Typically, tokens held on the pre-existing blockchain must be exchanged for the new native coins.
This process can be automatic or may require proactive participation by holders, which is a critical step to ensure continued control over their assets.
Token Exchange Process: Holders must follow specific instructions to swap their tokens, often through platform-provided tools or wallets, ensuring seamless transition. Failure to participate in time can lead to loss of assets.
Exchange Support: Major exchanges usually support mainnet swaps, assisting users by automatically converting their tokens and adjusting balances accordingly. It's crucial for holders to confirm exchange support to avoid disruptions.
A notable example is BNB, which migrated from Ethereum to Binance Chain. Token holders were able to swap their ERC-20 BNB tokens for native BEP2 BNB coins at a 1:1 ratio. Once the transition was complete, the old tokens were burned, and only BEP2 BNB could be used on the Binance Chain.
Potential Risks of a Mainnet Swap
Technical Risks: The deployment of a new blockchain can sometimes encounter bugs or errors. Therefore, rigorous testing is essential before launching the mainnet.
User Confusion: Despite notifications, some holders might miss key communications regarding the swap, leading to confusion or loss of assets.
Market Reaction: The market’s response can be volatile. Prices may fluctuate significantly due to speculation or lack of understanding among investors.
