The BNB Smart Chain (BSC), which is widely regarded as one of Ethereum’s most formidable competitors, is currently contemplating a new governance proposal that, if approved, will reduce the costs of transaction fees on the chain. This will ultimately benefit the network by increasing its competitiveness in comparison to its contemporaries.
New Governance Proposal For Lowering Fees
The recently submitted proposal states that BSC needed “a more flexible transaction fee structure” to assure effective block allocation and make it more appealing to new users. The reduced costs would further assist the BNB economy and boost BSC’s position in the crypto market, according to the new proposition.
Read More: Bitcoin Price Reclaims $28,500 Amid Binance FUD, Here’s Why
While transactions on the BSC network incur a flat fee of 5 gwei, Layer-2 solutions that exist outside of BNB ecosystems, such as Arbitrum (ARB), levy fees that are far more reasonable. According to data obtained from crypto analytics firm Nansen, the gas fee for Arbitrum’s median is set at 0.1 gwei at the time o writing.
Possible BNB Price Rally?
The proposal claims that network activity on the blockchain has decreased as a result of BSC’s high gas pricing. According to the information provided, BSC’s utilization in the overall crypto space is somewhere between 15 – 20% and could get worse if the network does not reconsider its high gas prices.
The user proposal was quoted as saying:
Over the last 6 months, the key measurements of the network have plateaued, creating a situation where the network is underutilized.
The Binance community and the larger crypto market have responded favorably to the new proposal, and market participants are of the opinion that this may eventually result in a bullish scenario for Binance’s native token, BNB. As things currently stand, the price of BNB is exchanging hands at $316, which represents a gain of 1.46% over the previous 24 hours in contrast to a decline of 3.82% over the last seven days.
Also Read: Ripple Lawsuit Pending Verdict Fueling XRP Price?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
