New Binance Proposal Wants To Reduce Transaction Fees To 3 Gwei To Compete With Ethereum Layer 2

On March 28 BNB Smart Chain has proposed a new proposal titled “A proposal for adopting a lower transaction fee cost on BNB Smart Chain to enhance competitiveness.”  The new proposal wants to reduce transaction fees from current 5 gwei to 3-4 gwei. BNB Smart Chain realizes that layer 2 solutions from Ethereum offer cheaper transaction fees when compare with BSC's Layer 1. Currently, BSC's transaction fees have been set at a fixed rate of 5 gwei. Adjusting fees to 3-4 gwei will help BSC maintain the market share. Although BSC validators might earn less from lowering transaction fees, but maintaining high transaction volume on the network would provide long-term benefit to validators. The new proposal aims to increase BSC's competitiveness with Ethereum Layer 2 scaling solutions.