The new BEP may decrease the total amount of BNB that validators and delegators obtain from staking.
Amid the continuing rally of Binance’s native token, Binance Coin (BNB), the developers of Binance Smart Chain (BSC) have proposed more measures to maintain the token’s deflationary model and enhance its intrinsic value.
In keeping with a new Binance Evolution Protocol BEP-95, BSC developers are considering introducing a real-time burning mechanism for a portion of gas fees to reduce BNB supply and drive BNB value higher by raising the demand. In keeping with the BEP, BNB holders will decide to dispatch the BSC gas reward.
Releasing the proposal on Friday, BSC developers noted that the new BEP might lower the total amount of BNB that validators and delegators obtain from staking. The burning mechanism shall be enabled by introducing governable parameters for 2 system smart contracts for collecting gas charges.
Created by Binance in 2017, BNB is a deflationary token by design, which means that Binance burns a percentage of the BNB supply every three months to maintain the token’s value. Binance will cease burning BNB once 50% of the preliminary supply has been burnt and solely 100,000,000 BNB remain.
The latest BNB token burn occurred last Monday, with Binance burning 1,335,888 BNB ($640 million) in its 17th quarterly burn.
The proposal comes amid BNB seeing a major rally recently, with the token breaking above $500 on Wednesday. On the time of writing, BNB is the third-largest cryptocurrency by market capitalization after Bitcoin (BTC) and Ether (ETH). The token is trading at $495, up around 44% over the past 30 days. BNB’s all-time high was recorded in May 2021, with the token surging to as high as $686, in accordance with CoinGecko.
The newest BIP, which occurred in August, is similar to a new transaction fee mechanism implemented for Ethereum’s London upgrade. In keeping with Etherchain, the present average ETH burns rate amounts to 3.76 ETH or $15,448 per minute.