The BNB burning process will be quicker and more efficient by the Binance Smart Chain network burning a portion of gas fees.
A Step Towards Further Decentralisation
The Binance Smart Chain (BSC) announced the new Binance Evolution Protocol (BEP-95) which will accelerate the burn rate of Binance Coin (BNB) tokens and BSC more decentralized, via a post through their official Twitter handle.
In a bid to make BNB even more of a deflationary token, the protocol will improve the intrinsic value of the asset by making it more scarce by burning a part of the gas fees. Each block will burn a fixed ratio of the gas fee collected by the validators in each block, the ratio of the burn is adjustable through governance mechanisms where the voting power is based on the number of BNB staked.
“The BEP-95 burn is solely dependent on the activity on the BSC network, and it will continue functioning (decreasing BNB supply), even after the scheduled BNB burns by Binance.com reach the target supply of 100m BNB in circulation,” clarified the official Binance blog that introduced the protocol on October 22nd.
The implementation of BEP-95 could decrease the cumulative amount of BNB tokens that delegators and validators earn from staking while simultaneously increasing the fiat-denominated value of the rewards. The protocol introduces a burning fee mechanism that looks quite similar to that introduced into the Ethereum network with the EIP-1559 as a part of the London upgrade that rolled in August this year.
About the Binance Smart Chain
The Binance Smart Chain is a leading blockchain network with the smart contract functionality. Since its launch on Aug. 31, 2020, the total value locked (TVL) in DeFi protocols quickly rose to hit an all-time high of $41.39 billion on May. 8, 2020, according to data from Dappradar. At the time of writing, the TVL stands at $21.45 billion.
Find about more the network and its ecosystem here:
Source : bsc.news
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