BNB Destruction Mechanism Revealed in Binance Smart Chain
After a recent hard fork, the creators of the BNB cryptocurrency shared how the token burning will be carried out in real time.
The activation of the BEP-95 update, which we wrote about recently, changed the principle of reducing the emission of tokens in the Binance Smart Chain. Now tokens will be burned in real time, and there will be no need to burn them once a quarter, as it was before the upgrade.
Now, when creating each block, part of the commission fees (up to 10%) that validators charge for their work will be destroyed. The widened deficit will positively affect the value of BNB. Therefore, experts are optimistic about the BEP-95 update.
Validators will receive fewer rewards for mining blocks of cryptocurrency. However, the increased BNB price compensates for the decreased reward.
The update will also eliminate the need for the quarterly token burn that Binance regularly conducts. The exchange last allocated $ 640 million to buy BNB on the market. With the launch of the BEP-95 update, the exchange may move away from this practice.
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