BEP-95

BEP-95 is a Binance Evolution Proposal that introduces a real-time burning mechanism to Binance Coin (BNB) on the Binance Smart Chain (BSC). The mechanism is designed to increase the value of BNB by reducing its supply in a dynamic and decentralized manner.

With BEP-95, a fixed ratio of each block's gas fees that validators collect will be burned, with the exact ratio being determined via the BSC's governance mechanisms. The burns will continue even after BSC has reached its target goal of 100 million BNB, putting upwards pressure on the coin's price.

To technically implement this mechanism, the network will collect each block's gas fees and split them between two smart contracts: the System Reward Contract and the ValidatorSet Contract. A portion of the gas fees will enter the System Reward Contract until it reaches a maximum of 100 BNB, which will be used as cross-chain package subsidies. All other gas fees will enter the ValidatorSet Contract and be shared daily with delegators and validators via the BNB Beacon Chain.

The ValidatorSet Contract has a burnRatio variable, which determines the percentage of gas fees that will be burned. Upon finalizing each block, a validator will sign a transaction transferring its gas fees to the smart contracts. The deposit function contains burning logic that triggers the formula: burnRatio * gasFee. This sum will then be transferred to the burn address, effectively reducing the supply of BNB.

The burnRatio can be adjusted via BSC's governance mechanisms, with validators voting on proposals to change the ratio. This occurs on the BNB Beacon Chain, and any community member can submit a proposal for review with a minimum deposit of 2,000 BNB. Quorum is reached at 50%, and the change will be implemented via cross-chain communication immediately.