The Bitcoin Cash (BCH) network is scheduled for its scheduled semi-annual hard fork upgrade on November 15th. Following the fork, users are expected to receive forked tokens on a 1:1 basis relative to their BCH holdings. In anticipation of this event, many trading platforms are making special arrangements to serve their users, including the launch of futures tokens that represent the upcoming new assets.
This guide explains the general processes and key considerations for users during a network upgrade of this nature.
Key Services for the BCH Hard Fork
To enhance user experience during the fork, exchanges often introduce temporary products and services.
Futures Token Listing
Some platforms may choose to list a futures token, often labeled as BCHZ or similar, prior to the actual fork. This allows users to trade the value of the expected new forked coin before it officially exists. A trading pair, such as BCHZ/USDT, is typically created on an innovation zone to facilitate this futures trading.
Locked Savings Products
A common service is a temporary locked savings product. Users can choose to deposit their BCH into this product before the fork snapshot. In return, the platform will distribute futures tokens representing the new forked asset on a 1:1 basis. These distributions might occur in several batches throughout the day. These futures tokens can be traded freely on the platform's market.
Important Post-Fork Mechanics
Understanding what happens after the upgrade is complete is crucial for asset management.
Distribution of the New Forked Token
After the hard fork is fully completed and the new chain is stable, the platform will take a snapshot of all accounts holding the futures tokens (e.g., BCHZ). These accounts will then receive the actual, mainnet forked tokens on a 1:1 basis. Any user who has sold their futures tokens before this snapshot will not receive the actual forked coins.
Users who simply held BCH in their spot wallets and did not use any special savings products will typically receive the new forked tokens directly into their accounts after the upgrade.
Chain Selection Policy
In the event a hard fork results in two persistent chains, most exchanges implement a chain selection policy. A common method is to evaluate the market price of the assets on both chains and designate the chain with the lower-priced asset as the "new forked token." The original BCH ticker is usually retained for the chain with the higher market value and greater community support.
Critical Risk Considerations
Participating in forks and trading futures tokens involves significant risk that must not be overlooked.
- Price Volatility: Futures tokens like BCHZ are highly speculative. Their value is entirely dependent on the market's perception of the future value of the forked coin. This can lead to extreme price swings.
- Potential for Loss: If the hard fork is unsuccessful, canceled, or fails to gain any market value, the futures token could become worthless, potentially falling to zero.
- Inherent Asset Risk: All digital assets are innovative investment products with high price volatility. It is essential to assess your own risk tolerance and investment capability carefully.
We advise all users to conduct their own research (DYOR) and understand these mechanisms fully before participating. 👉 Explore more strategies for navigating network upgrades
Frequently Asked Questions (FAQ)
What is a hard fork?
A hard fork is a permanent divergence in a blockchain's transaction history, resulting in two separate networks. It often occurs when developers implement a radical change to the protocol that is not backward-compatible. Holders of the original asset typically receive units of the new forked asset.
How do I claim forked tokens from an exchange?
If you hold the original asset on a supporting exchange during the snapshot block height, the process is usually automatic. The exchange will credit the new forked tokens to your account after the upgrade is complete, often following a brief period of evaluation to ensure network stability. You typically do not need to take any action.
What is the difference between a futures token and the real asset?
A futures token is an IOU that represents a claim on a future asset. It exists only on the exchange's internal ledger and allows for pre-launch trading. The real asset exists on its own independent blockchain mainnet and can be withdrawn to a personal wallet.
Can a hard fork fail?
Yes. A hard fork can fail if it does not achieve sufficient miner or community support, leading to the new chain being abandoned. This would render any futures tokens for that chain worthless.
What happens to my original BCH during the fork?
Your original BCH remains unchanged and under your control. The fork creates a new, separate asset. Your holdings on the original BCH chain are not affected by the creation of the new network.
Is there a guarantee I will receive forked tokens?
Exchanges support forks based on their technical feasibility and economic viability. Support is not guaranteed. If a fork is deemed insignificant or overly complex, an exchange may choose not to support the distribution of the new token. Always check your exchange's official announcements for their specific policy.