Binance Proposes New BNB-Chain Fee Updates — formerly BSC

Binance [$BNB] Coin With Folded Colombian Pesos Ⓒ 2023 – Crypto Coin Opps
Binance [$BNB] Coin With Folded Colombian Pesos Ⓒ 2023 – Crypto Coin Opps
Binance [$BNB] Coin With Folded Colombian Pesos Ⓒ 2023 – Crypto Coin Opps

Earlier this week, the World’s largest cryptocurrency exchange, Binance, introduced a new proposal for the BNB Chain fee system. According to the publication, the proposal aims to focus on two aspects: cost and security.

In this regard, Binance intends to reduce fees and make the BNB-Chain even cheaper for its users. On the other hand, the network also plans to release compatibility tools to increase security.

The updates are an attempt to increase its competitiveness against rival blockchain networks such as Solana (SOL) and Ethereum (ETH). Additionally, Binance aims to regain trust in the network after the year 2022 filled with attacks on BNB protocols.

According to the document presented on the network forum on Tuesday, the Binance Chain requires a more adaptable transaction cost distribution. Therefore, Binance proposes creating a more flexible transaction fee structure in an attempt to ensure efficient block utilization.

The project states that this approach would help sustain the BNB economy and, at the same time, improve the position of the BSC in the market.

Proposal for BSC According to the proposal, the high gas fees of the BSC have hindered network activity. Currently, Binance’s average fee is 5 gwei. Compared to Ethereum, the fee is low, but it is more expensive compared to other second-layer networks.

“The transaction costs of the BSC are currently set at a relatively high fixed rate of 5 gwei, which may not be as attractive to users as the more affordable fees provided by L2 solutions outside of the BSC ecosystem. This will ensure that existing and future BNB Chain L2 solutions remain competitive and maintain attractive users in the ecosystem,” says the proposal.

The proposal for BNB validators is to allow users to choose fees below the current 5 gwei rate, with options of up to 3 or 4 gwei. Therefore, users would have the option to customize the fee according to their financial needs.

In this regard, the proposal establishes minimum fees for BNB second-layer networks, which would be even cheaper. The target fee on these networks should be at least $0.005 per tx.

Validators would lose money at first, but the increase in volume would compensate for the drop in the transaction fee. The BNB team believes that this will serve as a strong financial incentive for validators to collect even more fees.

Combatting scams and attacks In a recently launched roadmap, BNB said that the focus in 2023 will be on EVM compatibility and the launch of the mainnet of its new layer 2 infrastructure, zkBNB, and BNB Greenfield. The blockchain also intends to increase its transaction throughput from a 140 million gas limit and 2,200 TPS to a 300 million gas limit and 5,000 TPS.

Meanwhile, daily transactions on BNB have increased almost 60% since the beginning of this year, from 2.46 million to 3.89 million on March 29. Despite the notable increase, the BSC suffered significant disruptions in 2022.

The network had to suspend its operations after suffering a $600 million attack in October. Several decentralized finance protocols hosted on the network also witnessed attacks throughout the year. This included Uranium Finance, Spartan Protocol, Meerkat Finance, among others.

Therefore, Binance also aims to reduce the risks of new actions and improve network security to attract more users.

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