Old tokens vs. new tokens: what you need to know about token migration

Cryptocurrency projects periodically upgrade their tokens by moving them to different blockchains, updating smart contracts, or revising the rules governing their use. As a result, a familiar digital asset may receive a new name, contract address, or technical specifications.

What is token migration?

Token migration is the process of transitioning a cryptocurrency project from an existing digital asset to an upgraded version. The changes may affect the blockchain, smart contract, ticker symbol, functionality, or economic model of the token.

Token migration is often called a token swap. However, this term is also used to describe the regular exchange of one cryptocurrency for another, so context is important.

The conditions of token migration are established by the project's team. In particular, the team determines the conversion ratio between old and new tokens. For example, with a 1:1 ratio, a user holding 500 old tokens will receive 500 new tokens.

However, conversions are not always carried out at equal ratios. In 2020, the cryptocurrency project Aave replaced its LEND token with AAVE at a ratio of 100:1. Holders could receive one AAVE for every 100 LEND.

Importantly, token migration does not mean that the previous token immediately ceases to exist. It may remain on the blockchain and continue to appear in users' wallets even if the project no longer uses it within its ecosystem.

Why do cryptocurrency projects migrate tokens?

Token migration happens for various reasons, but it's most commonly tied to a project's technological development.

One common token migration scenario involves switching blockchains. For example, a project may initially launch an ERC-20 token on the Ethereum network and later develop its own blockchain or migrate to another network offering higher throughput and lower transaction fees.

Another reason for token migration is a smart contract upgrade. An updated token may support additional features, including staking*, voting on project governance decisions, paying network fees, and interacting with decentralized applications.

* Staking is a method of earning rewards by committing cryptocurrency to a blockchain network or a specialized service. In networks using the Proof-of-Stake (PoS) consensus mechanism, tokens help secure the blockchain and validate transactions. Some cryptocurrency projects also offer staking programs, allowing users to lock tokens for a set period or deposit them into dedicated pools to earn rewards. The terms and potential returns depend on the specific project.

Sometimes, token migration becomes necessary due to changes in tokenomics*. Developers may adjust the total supply, issuance mechanisms, or distribution of digital assets among ecosystem participants.

* Tokenomics refers to the economic model of a cryptocurrency project, defining how its tokens are issued, distributed, and used. It includes parameters such as total and maximum supply, the rate of token issuance, allocation among developers and investors, and token burning and reward distribution mechanisms.

Token migration may also occur during rebranding, cryptocurrency platform mergers, or major changes to a project's business model.

How does token migration work?

A notable example of token migration is the upgrade of the Polygon ecosystem token, during which MATIC was replaced by POL.

In September 2024, POL became the native token of the Polygon PoS network. The conversion used a 1:1 ratio, though the required steps depended on where users stored their assets.

Users holding MATIC directly on the Polygon PoS network did not need to take any action. The transition to POL was implemented automatically.

The situation was different for MATIC holders on the Ethereum blockchain. To receive the new token, they needed to use the official migration tool.

Major centralized exchanges also participated in the token migration. For example, Binance temporarily suspended MATIC operations, converted users' balances into POL at the established ratio, and subsequently launched trading for the upgraded asset.

This example demonstrates that even within a single token migration, the procedure can vary significantly depending on how and where cryptocurrency holders store their assets.

Token migration vs. renaming: the example of TON and GRAM

Not every change to a cryptocurrency's name or ticker symbol requires token migration.

One example is The Open Network (TON) blockchain. In June 2026, the project's community supported renaming its native cryptocurrency from Toncoin (TON) to Gram (GRAM). The proposal received 81.22% of the votes, and the changes took effect on June 15.

However, no new cryptocurrency was issued, and existing coins did not need to be exchanged. The blockchain continued operating under its original name, TON, while wallet addresses and user balances remained unchanged.

For example, a user who held 100 TON before the renaming still had the same number of coins afterward, but they were now designated as GRAM. The new name appeared in wallets and on exchanges depending on when platforms updated their software.

For cryptocurrency holders, this distinction matters for security. Since no official TON-to-GRAM swap was required, offers to transfer coins to a third-party address or connect a wallet to a dedicated token migration service could indicate a scam.

Do you need to swap tokens manually on a cryptocurrency exchange?

If cryptocurrency is stored on a centralized exchange, token migration often takes place without the user's direct involvement.

The platform may handle all necessary procedures independently: temporarily restricting deposits, withdrawals, and trading; converting existing balances; and then reopening operations with the upgraded token.

However, automatic token migration is not mandatory for all exchanges. Each platform independently decides whether to support a particular upgrade.

Therefore, cryptocurrency holders should review official announcements from their trading platforms in advance. It is especially important to confirm token migration support if a user plans to transfer old tokens to an exchange specifically for conversion.

Sending an unsupported asset or using an incompatible blockchain network may result in the loss of funds.

How does token migration work in a personal cryptocurrency wallet?

With non-custodial wallets*, such as MetaMask or Trust Wallet, token migration can be more complicated.

* A non-custodial wallet is a cryptocurrency wallet in which the owner independently controls the private keys required to manage their digital assets. Unlike custodial wallets, such as accounts on centralized cryptocurrency exchanges, access to funds does not depend on a third party holding the keys.

These applications provide users with tools to manage their cryptocurrencies independently but generally do not replace tokens on their behalf.

If automatic token migration isn't supported, holders must use a dedicated service or smart contract developed by the cryptocurrency project's team.

Depending on the token migration conditions, the original assets may be locked or burned. Once the procedure is completed, the user receives the corresponding amount of new tokens.

An example of this process is Render Network's transition from RNDR on Ethereum to RENDER on the Solana blockchain.

The conversion was carried out at a 1:1 ratio. During the process, the old RNDR tokens were burned, and the user received new RENDER tokens in return.

Notably, not every token migration has a strict deadline. For example, no final expiration date was established for the official RNDR-to-RENDER migration mechanism.

Therefore, whether holders need to exchange their assets urgently depends entirely on the specific project's rules.

What happens if you keep the old tokens?

After token migration is completed, the old tokens do not necessarily disappear from a wallet. If their smart contract continues to operate, they may remain at users' addresses and even continue trading on certain exchanges.

However, simply holding these tokens does not mean they retain their previous value or functionality.

For example, after Render Network migrated to Solana, the RNDR token continued to exist on Ethereum. However, the project's main operations moved to RENDER, and the old version was no longer used for ecosystem activities or governance participation.

Over time, support for the outdated asset may decline. Exchanges may delist it, liquidity may decrease, and practical use cases may disappear.

Therefore, cryptocurrency holders should monitor not only a token's market price but also the role it plays within its project.

Main risks of token migration

Although token migration is standard for many cryptocurrency projects, it still carries risks.

First, users may select the wrong blockchain, specify an incompatible address, or use an incorrect conversion method. Particular caution is required when transferring assets between different networks.

Another challenge involves deadlines. Some projects establish a limited token migration period during which old assets can be exchanged for new ones. Once this period expires, the official conversion mechanism may become unavailable.

However, even without a deadline, postponing token migration can be disadvantageous because liquidity declines and support for the old asset gradually ends.

Fraudulent schemes deserve particular attention. Scammers frequently exploit news about major cryptocurrency upgrades by creating fake token migration websites.

Users may be asked to connect their wallets, sign transactions, or grant permission to access their tokens. Instead of completing the conversion, they risk having their funds transferred without authorization.

Offers to send cryptocurrency to an unknown address to supposedly receive new tokens automatically are particularly dangerous.

Users should take action only after verifying the project's official documentation.

What should you do when token migration is announced?

If developers announce an upcoming token migration, review the upgrade conditions before making any transactions.

The first things to check are:

1. Which assets are involved in the token migration? Identify the names and ticker symbols of both the old and new tokens, as well as the blockchain networks on which they operate.
2. What is the conversion ratio? The number of new tokens may match the previous balance or be calculated using a different ratio.
3. Is there a token migration deadline? If the project has established a deadline, missing it may prevent holders from using the official conversion mechanism.
4. Where are the assets stored? Different procedures may apply to tokens held on centralized exchanges and those stored in personal wallets.
5. Is user action required? Some token migrations happen automatically, while others require users to interact with a smart contract themselves.

It is equally important to verify the authenticity of the tools being used. The new token's contract address, migration website, and other technical details should be checked against the developers' official website and documentation.

Avoid following suspicious links from advertisements, private messages, or unofficial communities. Fraudulent websites may closely imitate the interface of legitimate services.

If token migration requires connecting a wallet, carefully review the requested permissions and transaction parameters. Seed phrases and private keys must never be disclosed to third-party services under any circumstances.