CZ intends to reduce fees to remain competitive with Solana and Ethereum.
The founder of Binance, Changpeng Zhao (CZ), has put up a daring plan to drastically cut gas prices on the BNB Chain. With the potential to reduce expenses by three to ten times, this project would establish BNB Chain as a strong rival to Ethereum and Solana in the fight for layer-one blockchains.
Binance’s Plan to Rule the Blockchain Industry
This news is made at a critical juncture, as BNB’s market value recently eclipsed Solana’s, surpassing 104 billion dollars.
With a typical gas price of 1 gwei, or roughly $0.01 per transaction, BNB Chain currently offers low costs.
In contrast, Solana maintains incredibly low prices of $0.0035 each transaction, whereas Ethereum charges an average of $0.42. With CZ’s suggestion, BNB Chain might become as reasonably priced as Solana while maintaining its advantages in terms of robustness and EVM compatibility.
With more than 68.3 million transactions handled each month, the BNB ecosystem is growing quickly and has become the busiest EVM chain.
The rise of new platforms like Four.meme, which has made it easier to create hundreds of memecoins on the BNB blockchain, has accelerated this expansion.
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Technological and Economic Consequences of This Cut
Gas fee reductions have the potential to drastically change BNB Chain’s appeal to developers and users, but they also raise serious concerns about the chain’s long-term sustainability.
Finding a balance between accessibility and spam protection is still the biggest issue, according to CZ. Reducing fees too drastically could overload the infrastructure and leave the network vulnerable to attacks.
During his conversations, CZ underlined the necessity to strike the correct balance between extremely low costs and a secure blockchain.
This initiative is part of a broader context where BNB is gaining institutional legitimacy, notably with the recent filing by VanEck for a BNB ETF with the US SEC.
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