Binance Smart Chain (BSC) To Introduce New Real-Time Fee Burning Mechanism, What Does It Mean?
A new real-time burn mechanism called BEP-95 has been introduced for Binance Smart Chain. If the BEP-95 introduced on Binance Chain Github is accepted by the network, the “burnRatio” parameter will be introduced to the network. So what is the purpose of the BEP-95 upgrade and what will be the benefit?
BEP-95 upgrade, the new real-time fee burning mechanism for Binance Smart Chain (BSC), introduced on Binance Chain Github, has 2 most important purposes. You can view the details about BEP-95 here. One of its most important goals is to accelerate the burning of BNB and reduce its circulating supply. This will cause BNB to be more valuable and will positively affect its true value.
BEP-95 is similar to the real-time fee burning mechanism used on the Ethereum network. Due to the deflationary effect after the recent upgrade in the Ethereum network, it was positively received in the crypto market and caused the Ethereum price to increase significantly.
As the circulating supply of an asset decreases, its value increases, causing its price to rise. A part of BNB is burned every 3 months, and a part of BNB is burned this month. On October 18, 1,335,888 BNB (approximately $639,462,868) was burned. The decrease in the circulating supply of an asset is indeed very important. I think that the BEP-95 upgrade will accelerate the BNB burning. This will positively affect the BNB price and cause it to become more valuable in the future.
The second most important goal of the BEP-95 upgrade is the further decentralization of Binance Smart Chain (BSC). Investors in the crypto market have loved decentralized apps and platforms. That's why decentralized platforms are increasing day by day and attracting more and more investors. Further decentralization of Binance Smart Chain (BSC) will be welcomed in the crypto markets. The use of BSC is already increasing day by day. I think this upgrade will accelerate that increase.
In short, I think the BEP-95 upgrade will enable more decentralization of Binance Smart Chain (BSC) and significantly increase the price of BNB and make it more valuable in the future.
If the network accepts the upgrade, the "burnRatio" parameter will be introduced to the network.
Burning Mechanism A governable parameters: burnRatio will be introduced in the ValidatorSet Contract. At the end of each block, the Validator will sign a transaction to invoke the deposit function of the contract to transfer the gas fee. The burning logic is implemented within the deposit function that: burnRatio * gasFee will be transferred to the burn address; The initial setting: burnRatio = 10%
Binance Coin (BNB) is currently trading at $482 and is trying to establish support prices above $480. BNB tested $500 2 days ago but was rejected from there for now. There is resistance at $485 and it is trading very close to the resistance. If it stays above $480 and creates support prices, it will retest $500. It can also break above $500 again and if it manages to create support above $500, it could accelerate its rise. If rejected, it has support at $470. The next most solid support is at $452. When we examine it according to the current data, it seems that it will continue to rise.
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