Binance gave one of the most anticipated information by the community about this exhange and its blockchain, the Binance Smart Chain (BSC). The Bruno update, which incorporates the burning of commissions in the aforementioned blockchain, will take place on November 30.
As CriptoNoticias explained about a month ago, with the BEP-95 improvement proposal (which is incorporated with Bruno) 10% of the BNB paid to network validators will be destroyed when making transactions. BNB is the native cryptocurrency of the BSC.
With this mechanism, which will be added to the periodic burns carried out by the Binance exchange, it seeks to increase the scarcity of the asset, which would make it more valuable.
Bruno will reach the Binance Smart Chain at the height of block 13,082,000. Ensures the Blog from the organization that “this update will have no effect on regular BSC users and developers, apart from the introduction of the real-time token burning mechanism.”
Those who should be vigilant are the node operators, who act as validators of the network, to update the software and make it compatible with the new protocol. If not, they will be out of the network, unable to connect or send transactions because they cannot synchronize with the nodes that are up to date.
The update will be produced by a hard fork (or hard fork). This means that the BSC after the update will not be compatible with the previous version. Hence the importance of the validators executing the corresponding update.
Any existing full node in the network that is not updated to the hard fork version, after the height of the hard fork block, it will no longer be able to execute more blocks.
Binance Smart Chain developer team.
The BEP-95 bears some similarity, in terms of its intentions, with the EIP-1559 improvement proposal that is already activated in Ethereum. Both proposals incorporate a commission burning mechanism to, among other things, reduce the currency of the native currency.
The BSC development team had warned that after the update “the total amount of BNB that validators and delegators receive for staking could decrease.” However, if the price of BNB rises, the value they receive as measured in fiat currency is expected to increase.
“This burning mechanism would further reduce the supply of BNB; therefore, the increase in demand would raise its value “, they indicate.
At the time of writing this article, each BNB trades at a price USD 578 average. Its historical maximum price was USD 690, reached just over 6 months ago, on May 10.
Competition grows, but Binance Smart Chain stands out in the dApps market
The Binance Smart Chain, which emerged in mid-2020, gained special relevance in the centralized finance ecosystem (DeFi). Many users of these protocols left behind the platforms developed in Ethereum due to the fact that the network congestion made the operations exaggeratedly expensive.
Currently, the BSC has a lot of competition. More and more DeFi protocols, play-to-earn games and non-fungible token (NFT) marketplaces are developed in other blockchains that also gained relevance such as Solana, Terra or Polygon.
In any case, the market for Internet users who interact with decentralized applications continues to use the Binance Smart Chain en masse. 2 days ago, on November 17, this blockchain reached the record of 14.7 million transactions in one day, a fact that was celebrated in his twitter account official.