Binance Smart Chain Team Plans to Implement Commission Burning

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The Binance Smart 小hain (BSC) developers have published a proposal to improve the BEP-95 ecosystem, which provides for a mechanism to burn part of the validator fees.

The update will be implemented if it gets more than 50% of the votes.

The project team noted that the proposed mechanism is intended to 鈥渟peed up the process of burning BNB and make BSC more decentralized鈥. It could also increase the value of Binance Coin and, in the long term, increase the reward of validators in terms of fiat, the developers believe.

The solution provides for the flaring of a fixed proportion of gas in each block. The coefficient can be adjusted by validators, by default it is 10%.

According to BscScan data, on October 21, the volume of commissions on the network was about 6814 BNB (~ $ 3.4 million) – a tenth of it would have been burned.

Data: BscScan.

At the same time, Binance will continue to burn BNB on a quarterly basis – on October 19, the exchange carried out this procedure for the 17th time. In its course, she withdrew from circulation 1,335,888 BNB worth more than $ 639 million.

The BSC developers recalled that BNB is not an inflationary token, and validators do not receive mining income, as is the case with Bitcoin or Ethereum.

In the network of the second largest cryptocurrency by capitalization, the mechanism for burning part of the commissions was introduced in August 2021 during the London hard fork.

Commenting on the BSC team’s proposal, one user called it “not good.” He noted that Ethereum miners continue to issue new coins.

鈥淓ndless deflation is destroying the economy. People would rather hold BNB than use it. When everyone does this, BNB will die, 鈥漢e said.

Against the background of the publication of BEP-95 and the beginning of voting, the price of the token approached $ 500.

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