We’re now less than a month away from the planned release of the TRON mainnet on the 25th of June. Once this network is live, TRON will begin the process of converting the current Ethereum-based ERC20 tokens to TRON’s own mainnet coins. With these new coins, TRON developers and holders will be able to utilize the full power of the TRON mainnet.
To learn more about the features of TRON’s mainnet, which include lightning fast, near-free transactions, read this article. If you want to get a hold of some TRON tokens before the mainnet launch, you can read this guide for purchasing cryptocurrencies.
Why do we need to convert our TRX?
TRX tokens in their current form are basically just coupons which are redeemable for mainnet TRX tokens. As the mainnet hadn’t been launched yet, there was no way for TRON to distribute mainnet tokens. Instead, they opted to circulate these ERC20 tokens so that users could invest and show their support for TRON before officially launching.
Currently, all TRX cryptocurrency is in the form of ERC20 tokens. These tokens exist on the Ethereum network – not the TRON mainnet. Because of this, they can’t utilise the mainnet features, such as fees of 1 cent per 200,000 transactions at more than 1000 transactions per second.
On the Ethereum network, TRX transactions are slower and more expensive. The fees average $0.50 per transaction and the entire network, which contains more than 80,000 other ERC20 tokens on top of Ethereum itself, can only handle about 15 transactions per second.
How do we convert our ERC20 TRX to mainnet TRX?
How you convert your TRX will depend on where you’re currently storing it. For TRX being kept on exchanges, you probably won’t have to do anything. If your TRON coins are being kept on an external wallet, such as a paper or hardware wallet, though, you’ll need to move them if you want them converted ASAP.
To make the transition as smooth as possible for users, TRON has partnered with most big exchanges to allow for automatic token conversion. On June 25, after the mainnet is launched, exchanges will transfer all of the ERC20 TRX they hold to TRON, who will destroy the tokens before sending the exchange an equivalent amount of mainnet coins. The exchange will then distribute these new coins to users with no action required on their part.
To have your tokens automatically converted, all you need to do is deposit them on an exchange before June 24. If you’re not sure which exchange to use, Binance is recommended as they don’t charge deposit fees.
If you missed the mainnet launch and didn’t convert your ERC20 tokens, don’t worry, TRON has got you covered. After launching the mainnet and automatically converting tokens for exchanges, TRON will be setting up a permanent token-exchange counter where users can send their ERC20 TRX to receive mainnet TRX.
Now is one of the best times to invest in TRON! TRX has been steadily gaining in popularity in the past few months as progress has been made on the mainnet. After launch, TRX will only be getting more popular as people see what TRON can achieve. If you’re interested in getting some TRX cryptocurrency before the launch, follow this guide.