Understanding BEP-95 (Bruno Hard Fork Upgrade)
BEP-95, also known as the Bruno Hard Fork Upgrade, is a Binance Evolution Proposal that introduces a real-time burning mechanism to Binance Smart Chain (BSC), a decentralized blockchain protocol Binance supports.
The upgrade was announced in October to implement a coin-burning process in real-time.
According to BSC developers, this mechanism will benefit validators and token holders by increasing the value of tokens over time.
Binance aims to enhance the network’s decentralization, targeting over 65% by speeding up the full node sync process.
Additionally, since the burning process involves BNB, it is expected to drive significant price appreciation for the coin.
Gas Fee Distribution in BEP-95
BNB is a deflationary token, meaning there is no mining algorithm in place for the creation of new tokens as rewards for validators.
The token supply will continue to decrease through planned BNB burns conducted by Binance.
In the BEP-95 protocol, the gas cost from each block is collected and distributed between two system smart contracts.
The System Reward Contract and the ValidatorSet Contract
The implementation of this new protocol will have the following effects:
- The BEP-95 burn mechanism relies entirely on the operation of the Binance Smart Chain (BSC) network. It will continue reducing the BNB supply even after reaching the target supply of 100 million tokens through scheduled burning events. This process will accelerate the token burning.
- As a portion of the gas costs is burned, the BEP-95 protocol will contribute to the decentralization of BSC.
- The burning mechanism is expected to increase the value of BNB.
Overall, BEP-95 aims to improve the functionality and value proposition of the Binance Smart Chain by implementing real-time token burning, enhancing decentralization, and potentially driving up the price of BNB.