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Glossary

BEP-95 (Bruno Hard Fork Upgrade)

November 21, 2023 - Around 5 mins mins to read

BEP-95, also known as the Binance Evolution Proposal, is a significant upgrade to the Binance Smart Chain (BSC), a decentralized blockchain protocol supported by Binance. This upgrade introduces a real-time burning mechanism for the BSC network. On October 22, the developers of BSC announced the implementation of the new BEP-95 protocol, which involves the real-time burning of coins. The primary objective of this concept is to enhance the value of tokens over time, benefiting both validators and holders.

To understand BEP-95, it’s important to first have a basic understanding of Binance Smart Chain (BSC). BSC is a blockchain platform that allows developers to build decentralized applications (dApps) and digital assets on its network. It was created by Binance, one of the world’s largest cryptocurrency exchanges, to provide an alternative to the Ethereum network with lower transaction fees and faster block confirmation times.

The BSC network operates using a consensus mechanism known as Proof of Staked Authority (PoSA), which combines elements of both Proof of Stake (PoS) and Proof of Authority (PoA). This means that instead of relying solely on miners to validate transactions and secure the network, BSC uses a select group of validators who have been chosen based on their reputation and stake in the network.

Now, let’s dive into the specifics of the BEP-95 upgrade. The key feature of BEP-95 is the introduction of a real-time burning mechanism for the BSC network. This means that a portion of the transaction fees and gas costs incurred on the network will be burned, effectively reducing the total supply of BNB, the native token of BSC.

Why is burning tokens beneficial? Burning tokens helps to create scarcity and increase the value of the remaining tokens. By reducing the supply, the demand for BNB may increase, potentially leading to price appreciation. This benefits both validators and holders of BNB.

BEP-95 shares similarities with Ethereum’s EIP-1559 protocol, which was implemented in August. EIP-1559 introduced a new fee structure on the Ethereum network, with a portion of the fees being burned and the rest going to miners. Similarly, the BEP-95 protocol aims to gradually reduce the circulating supply of BNB over time through continuous burning events.

One of the main goals of the BEP-95 upgrade is to enhance the decentralization of the BSC network. Currently, Binance controls over 60% of the network’s validators, which has raised concerns about centralization. By expediting the synchronization process of full nodes, the upgrade aims to distribute the power and control of the network more evenly among validators and other participants.

In addition to promoting decentralization, the burning of BNB through the BEP-95 protocol is expected to have a positive impact on the price of the token. As the supply of BNB decreases over time, and if the demand for BNB remains constant or increases, the limited supply may lead to price appreciation.

What is Gas Fee Distribution in BEP-95?

To understand how the burning mechanism works in the BEP-95 protocol, let’s take a closer look at the gas fee distribution. Gas fees are the fees paid by users to execute transactions and smart contracts on the BSC network.

In the BEP-95 protocol, the gas costs from each block are collected and distributed between two system smart contracts: the System Reward Contract and the ValidatorSet Contract.

The System Reward Contract is responsible for distributing a portion of the gas fees to validators as rewards for their participation in securing the network. This incentivizes validators to continue validating transactions and maintaining the integrity of the blockchain.

The ValidatorSet Contract, on the other hand, is responsible for burning a portion of the gas fees. The burned tokens are permanently removed from circulation, reducing the total supply of BNB. This burning process continues even after the scheduled burning events reach the target supply of 100 million tokens.

By burning a portion of the gas costs, the BEP-95 protocol not only contributes to the decentralization of the BSC network but also creates additional value for BNB holders. As more tokens are burned, the remaining tokens become scarcer, potentially increasing their value in the market.

It’s worth noting that BNB serves as the native token of the Binance exchange and has various applications within the Binance ecosystem. Holding BNB can provide benefits such as discounted trading fees, participation in token sales, and voting rights in governance decisions.

What is the conclusion?

The BEP-95 upgrade, also known as the Bruno Hard Fork, is a significant milestone for the Binance Smart Chain. By introducing a real-time burning mechanism, the upgrade aims to enhance the value of BNB over time and promote the decentralization of the network. The burning process reduces the circulating supply of BNB, potentially leading to price appreciation for the token.

It’s important to note that the BEP-95 protocol is just one of many upgrades and improvements happening in the blockchain and cryptocurrency space. As the technology continues to evolve, it’s essential for newcomers to stay informed and understand the potential impact of these upgrades on the networks and tokens they are interested in.

Whether you’re a validator, a holder of BNB, or simply interested in the world of blockchain, the BEP-95 upgrade represents an exciting development in the Binance Smart Chain ecosystem.

Author

Coincu

Glossary

BEP-95 (Bruno Hard Fork Upgrade)

BEP-95, also known as the Binance Evolution Proposal, is a significant upgrade to the Binance Smart Chain (BSC), a decentralized blockchain protocol supported by Binance. This upgrade introduces a real-time burning mechanism for the BSC network. On October 22, the developers of BSC announced the implementation of the new BEP-95 protocol, which involves the real-time burning of coins. The primary objective of this concept is to enhance the value of tokens over time, benefiting both validators and holders.

To understand BEP-95, it’s important to first have a basic understanding of Binance Smart Chain (BSC). BSC is a blockchain platform that allows developers to build decentralized applications (dApps) and digital assets on its network. It was created by Binance, one of the world’s largest cryptocurrency exchanges, to provide an alternative to the Ethereum network with lower transaction fees and faster block confirmation times.

The BSC network operates using a consensus mechanism known as Proof of Staked Authority (PoSA), which combines elements of both Proof of Stake (PoS) and Proof of Authority (PoA). This means that instead of relying solely on miners to validate transactions and secure the network, BSC uses a select group of validators who have been chosen based on their reputation and stake in the network.

Now, let’s dive into the specifics of the BEP-95 upgrade. The key feature of BEP-95 is the introduction of a real-time burning mechanism for the BSC network. This means that a portion of the transaction fees and gas costs incurred on the network will be burned, effectively reducing the total supply of BNB, the native token of BSC.

Why is burning tokens beneficial? Burning tokens helps to create scarcity and increase the value of the remaining tokens. By reducing the supply, the demand for BNB may increase, potentially leading to price appreciation. This benefits both validators and holders of BNB.

BEP-95 shares similarities with Ethereum’s EIP-1559 protocol, which was implemented in August. EIP-1559 introduced a new fee structure on the Ethereum network, with a portion of the fees being burned and the rest going to miners. Similarly, the BEP-95 protocol aims to gradually reduce the circulating supply of BNB over time through continuous burning events.

One of the main goals of the BEP-95 upgrade is to enhance the decentralization of the BSC network. Currently, Binance controls over 60% of the network’s validators, which has raised concerns about centralization. By expediting the synchronization process of full nodes, the upgrade aims to distribute the power and control of the network more evenly among validators and other participants.

In addition to promoting decentralization, the burning of BNB through the BEP-95 protocol is expected to have a positive impact on the price of the token. As the supply of BNB decreases over time, and if the demand for BNB remains constant or increases, the limited supply may lead to price appreciation.

What is Gas Fee Distribution in BEP-95?

To understand how the burning mechanism works in the BEP-95 protocol, let’s take a closer look at the gas fee distribution. Gas fees are the fees paid by users to execute transactions and smart contracts on the BSC network.

In the BEP-95 protocol, the gas costs from each block are collected and distributed between two system smart contracts: the System Reward Contract and the ValidatorSet Contract.

The System Reward Contract is responsible for distributing a portion of the gas fees to validators as rewards for their participation in securing the network. This incentivizes validators to continue validating transactions and maintaining the integrity of the blockchain.

The ValidatorSet Contract, on the other hand, is responsible for burning a portion of the gas fees. The burned tokens are permanently removed from circulation, reducing the total supply of BNB. This burning process continues even after the scheduled burning events reach the target supply of 100 million tokens.

By burning a portion of the gas costs, the BEP-95 protocol not only contributes to the decentralization of the BSC network but also creates additional value for BNB holders. As more tokens are burned, the remaining tokens become scarcer, potentially increasing their value in the market.

It’s worth noting that BNB serves as the native token of the Binance exchange and has various applications within the Binance ecosystem. Holding BNB can provide benefits such as discounted trading fees, participation in token sales, and voting rights in governance decisions.

What is the conclusion?

The BEP-95 upgrade, also known as the Bruno Hard Fork, is a significant milestone for the Binance Smart Chain. By introducing a real-time burning mechanism, the upgrade aims to enhance the value of BNB over time and promote the decentralization of the network. The burning process reduces the circulating supply of BNB, potentially leading to price appreciation for the token.

It’s important to note that the BEP-95 protocol is just one of many upgrades and improvements happening in the blockchain and cryptocurrency space. As the technology continues to evolve, it’s essential for newcomers to stay informed and understand the potential impact of these upgrades on the networks and tokens they are interested in.

Whether you’re a validator, a holder of BNB, or simply interested in the world of blockchain, the BEP-95 upgrade represents an exciting development in the Binance Smart Chain ecosystem.

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