With the continuous growth of Binance’s token, Binance Coin (BNB), the developers of Binance Smart Chain (BSC) have suggested more measures to preserve this token’s deflationary model and increase its intrinsic value.
According to the new Binance Evolution protocol, BEP-95, BSC developers are considering implementing a mechanism to burn a portion of the gas price in real time to reduce the supply of BNB and increase the value of BNB by increasing demand. According to the BEP, BNB holders will decide how to send the BSC gas reward.
While announcing the proposal on Friday, BSC developers noted that new BEPs could reduce the overall amount of GNP that auditors and delegates receive from the effort. The combustion mechanism will be possible by introducing adjustable parameters for two smart system nodes to collect gas costs.
Created by Binance in 2017, BNB is designed as a deflationary token, which means that Binance burns a percentage of the BNB supply every three months to maintain the value of the token. Binance will stop burning BNB when 50% of the original supply has been burned and only 100,000,000 BNB will be left.
The last BNB token burn occurred last Monday, with Binance burning 1,335,888 BNB ($640 million) in the 17th quarter.
The offer came amid a recent spike in BNB, when the token crossed $500 on Wednesday. At the time of writing, BNB is the third largest cryptocurrency measured by market capitalization after Bitcoin (BTC) and Ether (ETH). The token is trading at $495, which is 44% higher over the last 30 days. According to CoinGecko, the record for BNB was in May 2021, when the coin soared to $686.
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The latest GDP, which occurred in August, is similar to the new transaction fee mechanism implemented to upgrade London Ethereum. According to Etherchain, the current average burn rate of ETH is 3.76 ETH, or $15,448 per minute.