- Binance is set to carry out the Bruno upgrade v1.1.5 today, which will introduce the BEP-95 daily token burning mechanism and improve full node synchronization.
- BNB has gained 2.1 percent in the day to trade at $626, with the long-term intrinsic value expected to rise with the new deflationary system.
Binance will today conduct the Binance Smart Chain (BSC) Bruno upgrade v1.1.5 to introduce token burning with every transaction. The update also improves full node synchronization, which Binance says was a challenge on Nov. 17. On that day, the network’s daily active addresses surpassed 2 million and the number of processed transactions reached an all-time high of 14 million in 24 hours.
As Binance notes on its official website:
This hard fork will introduce a real-time burning mechanism into the economic model of BSC to introduce a new burning process of BNB, and speed up the full node sync by more than 60%.
Binance Bruno upgrade, Hard Fork and BEP-95
Notably, the network upgrade and hard fork are scheduled to take place at BSC block height 13,082,000 or around Nov. 30 at 08:00 AM UTC. It will bring with it the BEP-95 (Binance Evolution Protocol) for real-time token burning, previously announced late last month. Full node operators (validators) are encouraged to upgrade to v1.1.5 to continue receiving and executing additional blocks.
The update does not affect Binance users and developers. However, deposits and withdrawals on BSC will be suspended from approximately Nov. 30 at 07:45 AM UTC. These will resume once the upgraded network is deemed stable. Trading of BNB and other tokens on the BSC will continue as usual.
Thereafter, token burning will occur at a ratio of 10 percent of the transaction fees, a portion adjustable by the Binance community.
“After the activation of this upgrade, the blockchain will be able to handle a series of new features and eliminate existing bugs,” Binance notes.
BNB token and price action
Binance Coin (BNB), the third-largest cryptocurrency with a $105.5B market cap, has gained momentum with news of the development. At press time, our data shows the coin was trading at $626.88, up 2.1 percent in the day. Its 24-hour trading volume amounts to $2.4 billion.
Additionally, BNB has a supply cap of about 168 million tokens, of which 100 million will remain in circulation following the burn.
Binance has been conducting periodic burning of BNB tokens with the latest burn destroying over 1 million tokens from circulation. BEP-95 will now increase the deflationary rate of the coin, likely increasing “the intrinsic value of BNB in the long run”. Token burning will also increase network decentralization.