The elimination of some of the transaction fees will accelerate the implementation of the deflationary model and increase the value of Binance Coin, according to the developers of BSC
The Binance Smart Chain developers have published a proposal to update the BEP-95, which will add a mechanism for burning part of transaction fees to the blockchain, similar to how it happens in Ethereum. Burning some of the fees on the Binance Smart Chain will accelerate the implementation of the deflationary model and increase the value of Binance Coin, the developers say. The combustion factor will be determined by the BSC validators.
Each quarter, Binance uses 20% of its profits to repurchase and burn Binance Coin tokens. This will continue until the emission of altcoins is reduced by 50%, to 100 million. The last destruction of Binance tokens took place on October 18th. Crypto exchange burned $ 640 million worth of Binance Coin.
The mechanism for burning part of the transaction fees was activated in Ethereum on August 5 during the activation of the London update. Since that moment, 596.6 thousand ETH worth $ 2.45 billion have been destroyed in the network of the largest altcoin in terms of capitalization, according to the ultrasound.money service. The average burning rate of Ethereum per minute is 5.3 ETH ($ 21.8 thousand).