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


Binance Coin (BNC) is the native token of the Binance exchange, which has seen record-breaking success since its launch. Recently proposed to have fees burned every quarter in order for it to increase in value, this new plan will hopefully allow investors interested in buying more BNB tokens.

The “bnb coin price prediction 2025” is a new proposal that aims to raise the value of Binance Coin by burning BSC fees. It will be interesting to see if this plan works out or not.

 

The developers of Binance Smart Chain (BSC) have recommended new steps to sustain Binance Coin’s deflationary model and boost its intrinsic value amid the continuous surge of Binance’s native token, Binance Coin (BNB).

BSC developers are contemplating adopting a real-time burning mechanism for a part of gas costs, according to a new Binance Evolution Protocol, BEP-95, to restrict BNB supply and push BNB value higher by raising demand. BNB holders will select how to distribute the BSC gas payment, according to the BEP.

The revised BEP may reduce the overall amount of BNB that validators and delegators get from staking, according to BSC developers who released the proposal on Friday. The burning process will be enabled by establishing programmable settings for two gas fee collection smart contracts in the system.

Binance created BNB in 2017, and it is a deflationary token by design, which means that Binance burns a portion of the BNB supply every three months to keep the token’s value stable. Binance will cease burning BNB after half of the original supply has been consumed, leaving just 100,000,000 BNB.

Binance burned 1,335,888 BNB ($640 million) in its 17th quarterly BNB token burn on Oct. 18.

The suggestion comes as BNB has lately had a significant surge, with the token breaching over $500 on Oct. 20. BNB, behind Bitcoin (BTC) and Ether, is the third-largest cryptocurrency by market capitalization at the time of writing (ETH). The token is now trading for $495, up about 44% in the last 30 days. According to CoinGecko, the all-time high for BNB was reached in May 2021, when the coin reached $686.

Following the activation of EIP-1559, Ethereum miners are holding a record $70 billion in ETH.

The current BIP, which was released in August, is comparable to a new transaction cost structure that was created for Ethereum’s London upgrade. The current average ETH burn rate, according to Etherchain, is 3.76 ETH ($15,448 every minute).

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