BEP-95, also known as Binance Evolution Protocol, is a hard fork upgrade initiated by Bruno. Its main objective is to enhance the efficiency of the BNB token burning procedure.
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Binance Evolution Protocol (BEP-95) is a Bruno hard fork upgrade that aims to speed up the BNB token burning process.
What Is BEP-95 (Bruno Hard Fork Upgrade)?
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.
Gas Fee Distribution in BEP-95
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.
The new protocol will help the network in the following ways:
The BEP-95 burn is entirely reliant on the Binance Smart Chain (BSC) network’s operation, and it will continue to reduce BNB supply even after the scheduled BNB burning events achieve the target supply of 100 million tokens.
It will accelerate the process of burning the tokens.
Because a portion of the gas costs will be burned, BEP-95 protocol will make BSC more decentralized.
It will result in an increase in BNB’s value.