According to the new Binance Evolution Protocol, BEP-95, the BSC developers are considering introducing a real-time burning mechanism for some of the gas charges in order to reduce the supply of BNB and increase the value of BNB through increasing demand. According to the BEP, BNB owners will decide how to send BSC gas awards.
The BSC developers made the proposal on Friday, noting that the new BEP could reduce the total amount of BNB validators and delegators receive through staking. The combustion mechanism is activated by introducing manageable parameters into the two intelligent contracts of the system for gas toll collection.
BNB was created by Binance in 2017 and is inherently a deflationary token, which means Binance burns one percent 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 took place on October 18, with Binance burning 1,335,888 BNB ($ 640 million) in its 17th quarterly burn.
The proposal comes as the BNB has been seeing a major rally recently, with the token crossing the $ 500 mark 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 about 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.
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