Binance Offers a Real-Time Token Burning Method to Increase the Value of BNB

Kavya  |  Oct 23, 2021

Binance Smart Chain (BSC) is taking extra measures to include an additional deflationary mechanism to increase the token value. Binance has announced the launch of BEP-95, a new Binance Evolution Protocol (BEP). The BEP distinguishes itself from the network's infrequent token burns by introducing a real-time burning method.

Binance Provide A Real-time Token Burning Method To Increase BNB Value

Binance claims that a specific percentage of gas costs earned by validators in each block would be paid to the burn address. 

The starting ratio of 10% is modifiable based on adjustments provided by the Binance community. 

BSC validators are entitled to vote on community proposals, with voting power determined by the amount of BNB invested.

A minimum deposit of 2,000 BNB is required for a proposal to be assessed by the validators (mainnet). 

Following the completion of the voting process, all BNB is returned to holders. A winning proposal receives 50% of the total voting power on the mainnet.

Binance observes that parameters that have been voted on are instantly applied.

Characteristics of Binance Evolution Protocol (BEP-95) Burning Method

BEP-95 became important because it accelerates the burn of BNB tokens and makes the network more decentralized.

Binance wants to burn until 100 million BNB tokens remain in circulation, which is around 168 million tokens.

According to Binance, this will take 5-8 years to complete. 

The most recent quarterly burn of the network removed almost 1 million tokens worth $639 million from circulation.

However, according to the most recent blog update,  the BEP-95 burn "shall continue to work" even after the above-mentioned objective is reached.

Binance anticipates that the intrinsic value of the BNB token will rise in lockstep with demand as a result of the burn. 

The network warns that while validators and delegators may earn fewer tokens for staking, the "fiat-denominated worth of their incentives may grow." 

Furthermore, BNB offers several applications that benefit all token holders.

BEP-95 is now in the draught stage, and no precise deadline for implementation has been set by the network.

Several blockchains employ the crypto-burning technique to boost token scarcity and, as a result, token value. Ethereum, for example, employs the EIP-1559 for this purpose.

The Price Movement Of BNB

BNB, the fourth-largest cryptocurrency by market size, was trading at $494 at the time of publication. 

The token has gained 0.8% in a single day and 4.8 percent in a week. BNB, like other digital currencies, has risen as a result of Bitcoin's growth

Lark Davis, a cryptocurrency investor, and YouTuber predicts "positive things" for the BNB price following the formation of a $1 billion expansion fund.

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