In the post made by Binance Smart Chain (BSC), it was announced that a new burning mechanism called BEP-95 will be launched, which will speed up the regular Binance Coin (BNB) burning process.
The new incineration system BEP-95, which will enable BSC to become more decentralized, is currently in the proposal phase and is expected to be put to vote.
With BEP-95, some of the BNB transaction fees will also be burned, making BSC more decentralized.
New way to burn #BNB🔥🔥🔥
⚡️This BEP-95 will speed up the burning process of BNB and make #BSC more decentralized.
Calculate how much BNB will be burned everyday👇https://t.co/iv4kRHGA3k
— Binance Smart Chain (@BinanceChain) October 22, 2021
In a statement, Binance stated that a certain percentage of the transaction fees collected by the validators in each block of the system, which is in the trial phase, will be burned and that the burning rates can be changed.
The BEP-95 real-time incineration system will be limited to activity on the BSC network and will continue to reduce the supply of BNB even after reaching the target supply of 100 million BNB in circulation.
According to Binance’s current BNB burning program, which regularly burns BNB; every three months, 20% of the trade volume is eliminated by repurchasing or destroying BNB. Millions of BNB go out of circulation with each burning.
Since the new system accelerates the BEP-95 burning process, it is expected that this will have a positive impact on the BNB price and increase in the BNB price.
When we first reported that Binance was seeking to speed up the mechanism to burn BNBs, the dates were December 19, 2020. BNB was trading at $30 at the time.
*Not investment advice.