BNB Chain Reduces Gas Fees
Due to the increasing popularity of L2 on the Ethereum blockchain, BNB Smart Chain (BSC) validators have been forced to reduce gas costs by 40% to keep up with cheaper blockchains. Gas has been lowered from 5 GWEI to 3 GWEI (0.02 USD as of April 29, 2023).
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On March 29, 2023, the BNB Smart Chain community submitted a new proposal to reduce transaction fees on the BSC in order to increase competitiveness against L2. This move is intended to sustain the BNB economy and strengthen BNB Smart Chain's market position, which has been hampered by high gas prices. Lowering these costs would make the chain more competitive and improve future BSC layer-2 solutions.
According to the proposal's author, ArnoB: "Over the past 6 months, key network metrics have stabilized and created a situation where the network is underutilized, with utilization ranging between 15-20%. To prevent slower growth compared to rapidly growing L2 solutions, BSC validators should feel the urgency to rethink their current transaction fee structure."
This proposal was implemented among all blockchain validators on April 19.
It is apparent that the reduction in gas fees has not yet led to significantly higher network utilization than before April 19, 2023. This may be due to the current market situation. However, this change will no doubt play an important role in the future development of the entire ecosystem, especially in the DeFi sector, where low fees are essential for greater adoption on the blockchain.
I think this reduction is not the last one that the BNB Smart Chain will bring. If it wants to compete with L2s on the Ethereum blockchain, it will have to deploy its own L2 solution or lower fees even more. BSC mainly benefits from its connection to the Binance exchange (CEX), which is the largest cryptocurrency exchange in the world and has the most newcomers who are not as familiar with the crypto world. These newcomers often choose BSC as their first and only blockchain.