BNB smart chain (BSC) receives user proposal for lower transaction fees BNB smart chain (BSC) receives user proposal for lower transaction fees
According to the proposal, BSC's high gas fees have led to a decline in network activity — pushing its utilization to around 15-20%.
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Updated: Mar. 29, 2023 at 12:10 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
A BNB Smart Chain (BSC) user has proposed lowering the network’s transaction fees to increase its competitiveness against rival blockchain networks.
According to the March 28 proposal, BSC needs a “more flexible transaction fee structure, [to] ensure efficient block utilization, and attract new users.” The proposal added that the reduced fees would help “sustain the BNB economy and improve BSC’s position in the market.”
BSC reduced fee proposal
The blockchain industry has seen growing adoption of layer-2 (L2) networks directly competing with the BSC.
While BSC charges a fixed fee of 5 gwei for transactions, L2 solutions outside BNB ecosystems like Arbitrum (ARB) charge more affordable fees. For context, Arbitrum’s median gas price as of press time was 0.1 gwei, according to Nansen data.
According to the proposal, BSC’s high gas fees have led to a decline in network activity. The proposal claims BSC’s utilization is around 15-20% and could worsen if the network does not revisit its high gas fees.
Due to this, BSC validators are urged to reduce their fees to as low as 3 or 4 gwei. “This change would make BSC L1 more attractive than other ecosystems’ L2 solutions and provide a competitive advantage for potential BSC L2 solutions,” the proposal noted.
It added that validators would also benefit from this as it would bring more transaction volume to the network. This gives them the financial incentive to continue participating as validators.
BSC usage remains high
Meanwhile, BSC remains one of the most used blockchain networks in the industry.
The Binance-backed network has over 1.5 million active users. It is also the third-largest decentralized finance network — with the total value of assets locked on it at $5.04 billion, according to DeFillama data.
Besides that, BSC is one of the fastest Layer-1 networks in the market presently — theoretically processing 2,200 transactions per second (TPS). This puts it on the same level as other L2 networks like Optimism (OP) and Arbitrum.
Compared to these L2 networks, it processes more daily transactions. BSC processed 3.89 million transactions on March 28, far above Arbitrum and Optimism combined, according to ycharts data. However, this is a far cry from its May 2022 peak of 9.78 million.
DeFillama data also showed that BSC is among the top three networks per decentralized exchange transaction volume — behind only Ethereum (ETH) and Arbitrum.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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BNB, or Binance Coin, is a cryptocurrency created by Binance.
Ethereum
$3,421.81
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Arbitrum
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Arbitrum is a type of technology known as an optimistic rollup.