Binance Evolution Protocol (BEP-95) is a Bruno hard fork upgrade that aims to speed up the BNB token burning process.
Binance Evolution Proposal (BEP-95) offers a real-time burning mechanism to Binance Smart Chain, the Binance-backed decentralized blockchain protocol. The network revealed on October 22 that the new BEP-95 protocol will include a real-time coin-burning process. The concept, according to BSC developers, would benefit both validators and holders in the form of a higher value of tokens as the price will keep on increasing over time.
After Ethereum, BSC is the second most popular crypto network to use this strategy to inflate its native token’s price. It was included to make BNB’s tokenomics even more dynamic.
BEP-95 is similar to Ethereum’s EIP-1559 protocol, which was implemented earlier in August. Thus, like the ‘London Hard Fork,’ the Bruno update aims to reduce the amount of BNB in circulation over time.
Binance intends to improve the network’s decentralization (over 60%) by speeding up the full node sync. Furthermore, because it is a burning process for BNB, the coin’s price is expected to experience huge gains.
BNB is a deflationary token, therefore, there is no mining algorithm in place allowing new tokens to be mined and rewarded to validators. Moreover, the supply will continue to decrease in accordance with Binance’s planned BNB burns.
BNB is a native token of the world’s largest cryptocurrency exchange with a wide range of applications, and delegators and validators will continue to benefit from their BNB holdings.
From each block, the gas cost is collected and distributed between two system smart contracts, named System Reward Contract and ValidatorSet Contract.