BEP-95 Definition
BEP-95 (Binance Smart Chain Proposal 95) is a mechanism introduced within the Binance Smart Chain (BSC) ecosystem that enables an automatic burning process for the BNB tokens. This burn mechanism reduces the total supply of BNB in circulation, potentially triggering a price appreciation due to scarcity economics.
BEP-95 Key Points
- BEP-95 implicates an automated token burn process on the Binance Smart Chain.
- The burn mechanism in BEP-95 reduces the total supply of BNB.
- The BEP-95 burn process triggers automatically with each transaction, removing a portion of the transaction fee in BNB.
- Introducing a token burn can potentially increase the value of remaining tokens due to decreased supply.
What is BEP-95?
BEP-95 is a Binance Smart Chain Proposal that refers to the introduction of a burn mechanism for BNB on Binance Smart Chain. This burn involves the destruction of BNB tokens, reducing the total supply in circulation.
Why was BEP-95 created?
BEP-95 was created to facilitate an automatic token burn for each transaction carried out on the Binance Smart Chain. The token burn aims to increase value for users as it makes BNB more scarce, potentially raising the existing tokens’ price.
Where does BEP-95 function?
BEP-95 functions within the Binance Smart Chain (BSC) ecosystem, which is a blockchain network built for running smart contract-based applications. BSC runs in parallel with Binance’s native Binance Chain (BC), allowing users to get the best of both worlds: the high transaction capacity of BC and the smart contract functionality of BSC.
Who can use BEP-95?
All participants of the Binance Smart Chain network can experience the effect of BEP-95. Since it’s an automated process that applies to every transaction, both users interacting with BSC and BNB token holders are impacted by BEP-95’s implementation.
When was BEP-95 implemented?
BEP-95 was implemented within Binance Smart Chain’s ecosystem after a proposal and subsequent agreement by the community. However, please refer to the official Binance communication channels for the exact date and specifics of the implementation.
How does BEP-95 work?
BEP-95 works through an automatic burn mechanism. A portion of the BNB tokens used in transaction fees on the Binance Smart Chain is automatically removed from circulation (burned), thereby diminishing the overall supply of BNB. This feature is designed to create scarcity and potentially improve the value of the remaining tokens.
