BSC network to Introduce Fee-Burning Mechanism

BSC network to Introduce Fee-Burning Mechanism 2

Binance Smart chain team planned to introduce two new upgrades in the BSC network.

Binance introduced a BEP-95 update proposal to implement in the Binance Smart Chaine network. With the introduction of BEP-95 in the BSC network, it will change two new things. 

Decentralization of BSC network 

With this upgrade in the network, BSC became more decentralized. Because after the upgrade, only BNB holders will own the governance of the redistribution of the gas fees in the network. So it will give a type of public governance to the network. And this decentralized nature of the BSC network will make Binance coins more trusted like Bitcoin. 

Real-Time Fee- Burning Mechanism

With the BEP-95 upgrade, the BSC network will get a real-time transaction fee burning concept. 

As we know, Binance Exchange works behind the Binance coin to burn the BNB token quarterly. But now the new concept will burn the fees automatically without any additional work of sending BNB tokens at any unrecoverable address. 

Here, we can compare this concept of automatic BNB coin burning with the EIP-1559 upgrade of Ethereum. So here BNB coin’s price will increase exponentially from time to time like Ethereum.

Problem with the Upgrade 

No doubt, this initiative of the Binance team to bring the upgrade is appreciable. But if we look at the validators point of view, then they do not agree with this future upgrade because after the upgrade they will not get credit for the transaction fees. 

However, Binance coin doesn’t offer mining like Bitcoin & Ethereum operations to give rewards but here validators play an important role to validate the transactions. 

Read also: Stablecoin project Diem says we are not Facebook