BNB Smart Chain will Hard Fork a fix after the $100 million attack. Binance CEO Changpeng Zhao (CZ) said that the lower fee will lead to more Terra Classic (LUNC) being burned. CZ says the lower the fees, the bigger the burn for the altcoin. He also states that he has data to back it up.
BNB Chain to Hard Fork
cryptocoin.comAs you followed, BNB Smart Chain (BSC) has been hacked. In this attack on October 6, hackers managed to steal an estimated $100 million from the platform. BNB Chain will perform a Hard Fork as a fix for this exploit. According to a post on GitHub on Tuesday, the release of the ‘temporary emergency patch’ will occur on Wednesday, October 12.
A Hard Fork is a change to a Blockchain protocol that makes older versions obsolete. It is performed when a network makes fundamental changes to its mechanics or governance, or as in this case, as a way to fix weaknesses that lead to attacks or exploits.
Closely linked to cryptocurrency exchange Binance, BNB Chain consists of BNB Beacon Chain and BNB Smart Chain (BSC). Binance has announced that deposits and withdrawals for the BSC network will be suspended one hour before the Hard Fork. It also said that it will reboot once the upgraded network is deemed stable.
Binance CEO: Lower wages mean more burning!
In a summary of an AMA shared by Terra Rebels three days ago, Binance CEO Changpeng Zhao claims that lower fees will generate more burn. CZ notes the following on the subject:
To burn more and more LUNCs, we need a minimum fee so that our altcoin fee revenue becomes the highest. Then we burn all the revenue. Simply charging more does not mean we have more income. Too often, getting paid more means you have less income. Most LUNC members think Binance will burn more altcoins if we charge 1.2% fees. However, this is an error.
However, CZ said, “… we are burning all our income. We do not make any money from LUNC transaction fees. We burn them all,” he says. Also, CZ is encouraging other exchanges to burn LUNC. But he says he doesn’t control them. In this context, CZ explains:
I also encourage other exchanges to do so. But me and the LUNC community do not control other exchanges. So it’s up to other exchanges. We did our part.
Insight into the altcoin burning issue
The Terra Classic (LUNC) community has previously pressed for a 1.2% fee for off-chain activities. Despite this, Binance chose to burn 0.1% fees from trading instead. This is a very low fee. However, about 8.5 billion LUNCs have been burned so far. It managed to burn almost twice the 1.2% wage in the same period.
Notably, the 1.2% incineration fee on activities on the Blockchain has been a hype. However, despite this, the pay failed to meet expectations. For example, Terra developer Alex Forshaw highlighted in a recent blog post that on-chain volume has dropped by as much as 90% since its implementation.
As a result, 10% of the earned fee is reserved for the development of Blockchain. Meanwhile, a new proposal has been launched to lower the fee to 0.2%. The bidder, known as Akujiro, hopes the proposal will attract people moving to centralized exchanges to avoid fees for on-chain activities.
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