Developers of Binance Smart Chain, the decentralized blockchain backed by Binance reveals plans to implement a gas-burning mechanism in the near future. Notably, Developers of the chain makes a proposal that points in that direction.
More so, The Developers calls it the BEP-95. Notably, it will burn some of the fees that users spend in transactions. Then, may interact with smart contracts on the network.
Furthermore, these fees are for validators as rewards for securing the network.
However, with BEP-95, 10% of these funds will be burned as per the network activity.
Notwithstanding, This percentage can still change, and members can change this number through community vote.
As per the Developers proposal, the target is to “speed up the BNB burning process and…”
“improve its intrinsic value by burning a portion of gas fees.”
Developers Targets Sustainability
Additionally, Binance Smart Chain developers are on this project in order to make BNB more sustainable.
As of now, Binance handles BNB burns on a regular basis.
However, the exchange only burns 100 million BNB tokens. Once it reaches this number, there’s no more burns by the exchange.
Meanwhile, the Developers wants to guide the currency to remain competitive. Thereby, decreasing the amount of BNB in the market and making it more scarce.
Recall, this method is taking the path of Ethereum earlier this year. Which is called EIP-1559, where burning a part of the fees that would normally go to miners.
Additionally, This proposal by the developers looks to contribute to the price growth Ethereum is experiencing.
Lastly, BNB and Ethereum have no max supply. Consequently, there’s a similar interest to monitor the issuance and supply in order to maintain price stability.
Also, The proposal is in early stages and still subject to change.