The developers of the Binance smart chain, the Binance-supported decentralized blockchain platform, have proposed to implement a method for burning BNB tokens based on network usage. According to the proposal, the increase in the price of tokens due to token burning will benefit both the legitimacy and the holder. The proposal called Binance Evolution Protocol 95 (or BEP-95) bears an striking resemblance to EIP-1559, an already implemented Ethereum proposal that burns fees.
Binance smart chains can burn gas fees
The Binance smart chain, a decentralized blockchain supported by Binance, could implement a gas-burning mechanism in the near future. The developers of the chain have unveiled a proposal that points in that direction. The proposal, called BEP-95, will burn some of the fees that users spend on transactions or interacting with smart contracts on the network.
Usually this fee will go to the legitimacy as a reward for securing the network. But with BEP-95, 10% of this funding will be burned depending on network activity. This percentage is subject to change, and members can change this number through a community vote. According to the proposal, the goal of this new implementation will be to “accelerate the BNB burning process and improve its underlying quality by burning a portion of the gas fuels.”
Binance smart chain developers can bet on this change to make BNB more sustainable. Currently, Binance manages the regularly announced BNB Burn. But the exchange has agreed to burn only 100 million BNB tokens. Once this number is reached, the exchange will no longer burn.
By changing the economic policy of the network, developers ensure that the currency remains competitive, reducing the amount of BNB in the market and making it more scarce. The move appears to mimic the Ethereum-approved proposal earlier this year, called EIP-1559, which was also implemented to burn a portion of the fees that would normally go to miners. This new economic proposal seems to have contributed to the price increase that Ethereum has experienced since its approval.
BNB and Ethereum do not have maximum supply, so there is a general interest in controlling the issue and supply to maintain price stability. The proposal is still in the early stages, and may change before it is implemented in the BSC blockchain.
What do you think about the offer to burn BNB that comes from Binans smart chain devs gas fees? Tell us in the comments section below.
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