New proposal aims to add value to Binance Coin by burning BSC fees


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Amid the ongoing rally of Binance’s native token, Binance Coin (BNB), the developers of Binance Smart Chain (BSC) have proposed further measures to maintain the token’s deflationary model and improve its intrinsic value.

According to a new Binance Evolution Protocol, BEP-95, BSC developers are considering introducing a real-time burning mechanism for some of the gas charges to reduce BNB supply and increase BNB value by increasing demand. According to the BEP, the BNB owners decide how to send the BSC gas premium.

When the proposal was released on Friday, the BSC developers noted that the new BEP could reduce the total amount of BNB validators and delegators receive through staking. The burning mechanism is made possible by the introduction of adjustable parameters for two intelligent system contracts for the collection of gas fees.

BNB was founded by Binance in 2017 and is inherently a deflationary token, which means that Binance burns a percentage of the BNB supply every three months to preserve the value of the token. Binance will stop burning BNB as soon as 50% of the original supply is burned and only 100,000,000 BNB are left.

The last BNB token burn occurred on October 18, with Binance burning 1,335,888 BNB ($ 640 million) in its 17th quarterly burn.

The proposal comes amid a BNB that has seen a major rally recently, with the token breaking above $ 500 on October 20th. At 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. The BNB’s all-time high was recorded in May 2021, with the token rising as high as $ 686, according to CoinGecko.

Related: Ethereum miners hoard a record of $ 70 billion in ETH after activating EIP-1559

In August, the latest BIP resembles a new transaction fee mechanism implemented for the London upgrade from Ethereum. According to Etherchain, the current average ETH burn rate is 3.76 ETH, or $ 15,448 per minute.