The developers of Binance Smart Chair (BSC) have released a proposal to improve the BEP-95 ecosystem, including a mechanism to burn off a portion of validator commissions.
The aims of the mechanism
New way to burn #BNB🔥🔥🔥— Binance Smart Chain (@BinanceChain) October 22, 2021
⚡️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
The update is implemented if it obtains more than 50% of the votes.
The project team noted that the proposed mechanism was aimed at “speeding up the BNB burning process and making BSC more decentralized”. The developers believe that it can also increase the value of Binance Coin and, in the long run, increase the reward of validators in terms of fiat.
The solution is to burn a fixed fraction of gas in each block. The coefficient can be adjusted by the validators, by default it is 10%.
At the same time, Binance will continue the quarterly burning of BNB: the platform has already performed this procedure 17 times, on October 19. As part of this, it withdrew from circulation 1,335,888 BNB worth more than $ 639 million.
A proposal not attractive enough
Yesterday we burnt $639M of #BNB.— Binance (@binance) October 19, 2021
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The developers of BSC recalled that BNB was not an inflationary token and that validators do not receive income from mining, as in the case of Bitcoin or Ethereum.
In the network of the second most capitalized cryptocurrency, the mechanism of the burning of a part of the commissions was introduced in August 2021 seriously at the London hardfork.
Commenting on the BSC team’s proposal , one of the users called it “not very good”. He noted that Ethereum miners continue to issue new currencies.
“Endless deflation is destroying the economy. People prefer to keep BNB rather than using it. When everyone else does, BNB will die, ”he said.
In the context of the release of the BEP-95 and the start of the vote, the price of the token approached $ 500.
Previously, Binance had created a $ 1 billion fund to develop and support the BSC ecosystem.