Key Points:

  • BNB Chain announced that according to the community proposal, validators had reduced the transaction cost from 5 Gwei to 3 Gwei.

  • Previously, a proposal from the community proposed to reduce the cost of transaction fees on the chain to enhance competitiveness.

BNB Chain recently reported on Twitter that validators on the chain have cut the transaction fee from 5 Gwei to 3 Gwei based on the community suggestion.

BNB Chain validators decided to reduce gas fees by 40%, citing rising competition from low-cost Ethereum layer-2 networks.

We're confident this change will continue to unlock the power of BNB Chain for all https://t.co/oi6Acpp7gu

— BNB Chain (@BNBCHAIN) April 22, 2023

Gas costs would be decreased from 5 gwei to 3 gwei, according to the plan. According to BscScan, the current cost of 3 gwei is about $0.02.

On March 29, the BNB Chain community released a new proposal to cut the cost of transaction fees on BSC in order to increase competitiveness, claiming that this would make BSC L1 more appealing than competing ecosystem L2 options.

It also said that the lower costs would assist “sustain the BNB economy and boost BSC’s market position.” BSC’s high gas prices have hampered network activity, with claims that utilization of approximately 15-20% might worsen if the gas charge is not reduced.

The proposal saiad that cutting gas prices on the layer-1 BNB Chain would make it more competitive and would also benefit future layer-2 BNB chain solutions. Apart from the large transaction volume on BNB Chain, which would provide a significant financial incentive for validators to participate, the strategy is projected to improve sustainability, attract new users, and maximize block consumption on the network.

According to the proposal, by adopting this idea, both BNB L1 and L2 will gain from greater competitiveness and market flexibility, delivering a win-win solution for the whole ecosystem.

However, daily transactions on BNB Chain have climbed by almost 60% year to far, from 2.456 million on January 1 to 3.406 million on March 29. Despite the huge increase, BNB Chain experienced serious difficulties in 2022.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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