In the world of cryptocurrencies, it is quite common for a project to decide to transfer its tokens from one blockchain to another. This process is called token migration. The reasons for such a step can vary — the need to increase transaction speed, reduce fees, improve security, or gain access to new features or scalability. Migration is a complex and important process that affects all token holders of the project. To avoid missing important news about upcoming migrations and other key events, it is useful to use specialized resources for tracking cryptocurrency news, such as crypto calendars, which aggregate up-to-date information about significant updates in the industry. In this article, we will take a detailed look at what happens to tokens after migration, the stages involved in the process, and how users should act to avoid
Why projects migrate tokens to another blockchain
The main reasons for migration include:
• Limitations of the original blockchain. For example, high congestion, large fees, or lack of necessary features (smart contracts, multi-signature, scalability options).
• Emergence of more modern and efficient platforms. For instance, moving from Ethereum (ETH) to the project’s own blockchain or faster-growing networks like Binance Smart Chain, Solana, Polygon.
• Strategic changes. The project may redistribute priorities and ecosystem needs, requiring new technical solutions.
• Integration with major partners. Sometimes projects merge or join new ecosystems, which requires blockchain unification.
How token migration works: main stages
• Announcement and preparation. The project team notifies users in advance about the upcoming migration, deadlines, and token exchange methods. It is very important to carefully follow official information to avoid missing critical dates.
• Locking or burning old tokens. To prevent double spending, old tokens are locked on special addresses (for example, smart contracts with freeze functions) or completely destroyed (“burned”). This ensures that the total circulating supply remains the same, but now on the new blockchain.
• Issuing new tokens on the new blockchain. After locking the old tokens, the project issues new ones — identical in quantity and value. Users receive these tokens in their wallets on the new network.
• Token swap. There are two options:
• Automatic swap: The user simply holds tokens in a wallet or exchange that supports migration, and the service performs the swap automatically.
• Manual swap: The user is required to exchange old tokens for new ones through an official website or decentralized exchange.
• Swap period. Usually, the project sets a limited time frame during which the swap must be completed. After this period, old tokens may lose value or become impossible to exchange.
• Completion of migration. All assets are transferred to the new network, and the project starts full operations on the new blockchain.
What happens to tokens from the user’s perspective
• If tokens are held on an exchange, migration usually happens automatically — the exchange updates the tokens and informs users.
• If tokens are in a personal wallet, the user must follow instructions and manually swap tokens if required.
If the swap is ignored, old tokens risk becoming worthless as support on the old blockchain is discontinued.
How migration affects token price
• Positive effect: A successful and well-managed migration, accompanied by improved functionality, growing partnerships, and active PR, can significantly increase the token price.
• Risks of price drop: Poorly executed migration with delays, technical issues, or weak communication causes loss of trust and price decline.
• Volatility: Increased price volatility is common during migration periods, with sharp fluctuations.
Tips for token holders before and during migration
• Carefully read official announcements and watch deadlines.
• Use only official channels and services for swapping.
• If tokens are on an exchange, check with support about the migration process.
• Never share private keys or use suspicious third-party services.
• Consult the community or experts if unsure.
Conclusion
Token migration is an important stage in the development of many crypto projects. With the right approach, it opens new opportunities, improves the technical base, and helps the project grow. For users, the key is to closely follow news, follow instructions, and not miss swap deadlines to preserve assets and enjoy all benefits of the updated network.
