The developers of Binance-powered decentralized blockchain platform Binance Smart Chain have proposed a burning mechanism for BNB tokens based on the use of the network. Here are the BNB plans from Binance Smart Chain developers.
According to the proposal made by the developers of Binance Smart Chain, it is planned that this burn mechanism will provide an increase in value, and this increase in value will bring significant benefits to both validators and holders.
Dubbed the Binance Evolution Protocol 95 (or BEP-95), the offer bears significant resemblance to EIP-1559, an Ethereum offer that has already been implemented and is also burning fees.
Transaction Fees Can Also Be Burned On Binance Smart Chain
The decentralized blockchain powered by Binance, Binance Smart Chain, can implement the fee-to-burn mechanism used in Ethereum in an upcoming update. Blockchain developers think that a mechanism similar to Ethereum’s could be useful for BNB. In this proposal, called BEP-95, a portion of the fees users spend to transact or interact in smart contracts on the network will be burned from the total supply on the network.
It is planned to burn 10% of these fees with the BEP-95 update. Normally, these fees are distributed to users as a bonus. With this new application, the developers aim to speed up the BNB burning process and increase the value of BNB by burning 10% of the transaction fees.
This proposal proposed by the developers could also be an important development that could make BNB more sustainable. BNB was currently being burned after the announcements made by Binance. Binance has only agreed to burn 100 million BNB tokens so far. Subsequent burnings would not be carried out by the stock exchange. If this update comes, it looks like there will be a better and more sustainable burning mechanism for the BNB token.
This update proposal, which exemplifies Ethereum’s mechanism, could create a price stability for the limited supply (200 million) of BNB. Stating that the proposal is still in its early stages, the developers also stated that it may experience some changes before starting to implement it on the BSC blockchain.