BEP-95 (Bruno Hard Fork Upgrade) refers to a Binance Smart Chain (BSC) network upgrade that introduced a real-time token-burning mechanism to the blockchain. This proposal, named after Bruno, aimed to make BSC more deflationary by burning a portion of gas fees collected from transactions, thereby reducing the total supply of BNB tokens over time. BEP-95 is significant because it enhances the value proposition of BNB by creating scarcity, aligns with Binance’s long-term tokenomics strategy, and improves decentralization by incentivizing validators and delegators.
What Is BEP-95 (Bruno Hard Fork Upgrade)?
BEP-95 is a Binance Evolution Proposal (BEP) implemented through the Bruno Hard Fork Upgrade on the Binance Smart Chain. It introduced a mechanism to burn a fixed percentage of gas fees collected from transactions on the network. This upgrade ensures that BNB tokens are continuously removed from circulation, making the token supply deflationary.
The proposal was inspired by Ethereum’s EIP-1559 but tailored to fit the unique architecture of Binance Smart Chain. Unlike Ethereum, where the base fee is burned, BEP-95 burns a portion of the gas fees collected by validators, ensuring that the burning process is directly tied to network activity.
Who Developed BEP-95 (Bruno Hard Fork Upgrade)?
BEP-95 was developed by the Binance Smart Chain development team, which is supported by Binance and its broader ecosystem. The proposal was created in collaboration with the BSC community, including validators, developers, and stakeholders, to ensure it aligned with the network’s goals of scalability, decentralization, and sustainability.
The upgrade was named “Bruno” to represent the community-driven nature of the proposal and to signify a major milestone in the evolution of Binance Smart Chain.
When Was BEP-95 (Bruno Hard Fork Upgrade) Implemented?
The Bruno Hard Fork Upgrade, which included BEP-95, was implemented on November 30, 2021. It was activated at block height 13,082,000, following a period of testing and community discussions to ensure a smooth transition.
The timing of the upgrade was strategically chosen to align with Binance Smart Chain’s roadmap for improving network efficiency and tokenomics.
Where Does BEP-95 (Bruno Hard Fork Upgrade) Apply?
BEP-95 applies exclusively to the Binance Smart Chain, a blockchain network designed to support decentralized applications (dApps) and smart contracts. The upgrade impacts all transactions on the BSC network, as a portion of the gas fees paid by users is burned in real-time.
This mechanism is executed on-chain, meaning the burning process is transparent and verifiable by anyone using blockchain explorers or other tools to monitor BSC activity.
Why Was BEP-95 (Bruno Hard Fork Upgrade) Introduced?
The primary reasons for introducing BEP-95 were:
- To make BNB a deflationary asset by reducing its total supply over time, thereby increasing scarcity and potentially boosting its value.
- To align with Binance’s long-term tokenomics strategy, which includes periodic token burns to benefit holders.
- To incentivize network activity by tying the burning mechanism to transaction volume, encouraging more usage of the Binance Smart Chain.
- To enhance decentralization by ensuring validators and delegators play a key role in the burning process, as they receive rewards from gas fees before the burn occurs.
By implementing BEP-95, Binance Smart Chain aimed to remain competitive with other blockchain networks, such as Ethereum, which had already introduced similar deflationary mechanisms.
How Does BEP-95 (Bruno Hard Fork Upgrade) Work?
BEP-95 operates by burning a fixed percentage of the gas fees collected from transactions on the Binance Smart Chain. Here’s how the process works:
- When a user initiates a transaction on BSC, they pay a gas fee to validators for processing and validating the transaction.
- Under BEP-95, a portion of these gas fees (initially set at 10%) is automatically burned, reducing the total supply of BNB tokens.
- The remaining gas fees are distributed to validators and delegators as rewards for securing the network.
- The burn percentage is adjustable through governance proposals, allowing the community to modify the rate based on network needs and economic conditions.
This mechanism ensures that the burning process is continuous and directly proportional to network activity. The more transactions occur on BSC, the more BNB is burned, creating a dynamic and self-sustaining deflationary model.
By integrating BEP-95, Binance Smart Chain not only improves the value proposition of BNB but also strengthens its ecosystem by fostering greater participation and alignment among stakeholders.
