What is BEP-95 (Bruno Hard Fork Upgrade)?
Let's find out BEP-95 (Bruno Hard Fork Upgrade) meaning, definition in crypto, what is BEP-95 (Bruno Hard Fork Upgrade), and all other detailed facts.
Binance Evolution Proposal (BEP-95) is a protocol offering a faster burning mechanism to the Binance Smart Chain (BSC). This protocol, also known as the Bruno hard fork upgrade, aims to burn the coins on the Binance-backed decentralized blockchain protocol in real-time.
The BEP-95 was revealed on October 22, 2021. According to the developers, the optimization process can benefit validators and holders as the value of BNB tokens goes up after the excess is burned, allowing the price to perpetually rise.
Ethereum’s EIP-1559 protocol, implemented in August 2021, is similar to the BEP-95. The London hard fork update implemented on the Ethereum blockchain is part of the broader schedule of upgrades that aim to transfer Ethereum from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism.
Binance Smart Chain is the second most popular network after Ethereum to utilize a hard fork strategy as means of price inflation. This strategy aims to make the tokenomics of BNB more dynamic.
Binance’s goal is to speed up the full node synchronization, thus improving the decentralization of the entire network. It is expected that the price of Binance’s native coin BNB will experience significant gains.
Gas Fee Distribution in BEP-95
BNB is the native token of Binance, one of the biggest cryptocurrency exchange platforms in the world. It has numerous uses, like covering crypto transaction fees on its native platform or using it on blockchains with appropriate integrations.
BNB is a deflationary token. This means that a mining algorithm is not used to create new blocks on the chain. The supply of BNB will progressively decrease with each burning event planned by Binance.
BNB uses a unique consensus algorithm known as Proof-of-Staked-Authority (PoSA), which functions as a hybrid of Proof-of-Stake (PoS) and Proof-of-Authority (PoA) mechanisms. With each verified block, the validators receive a reward from the transaction fees. No new BNB is minted as a reward.
The transaction fees, also known as gas cost, are collected and go towards the two system smart contracts – ValidatorSet Contract and System Reward Contract.
The BEP-95 is set to improve the network. The expected improvements are:
- The BEP-95 burn will keep progressively reducing the supply of BNB, continuing past the target supply of 100 million tokens;
- The process of token burning will be sped up;
- Binance Smart Chain will become more decentralized thanks to the portion of transaction fees burning off;
- The value of BNB will increase.