A Proposal for Adopting a lower Transaction Fee Cost on BNB Smart Chain to Enhance Competitiveness

Title: A Proposal for Adopting a lower Transaction Fee Cost on BNB Smart Chain to Enhance Competitiveness.

Introduction
As a blockchain user, I have observed the need for a more adaptive transaction cost distribution on the BNB Smart Chain (BSC). This proposal aims to justify the importance of having a more flexible transaction fee structure, ensure efficient block utilization, and attract new users. Ultimately, this approach would help sustain the BNB economy and improve BSC’s position in the market, especially in the multichain strategy that we can observe in the roadmap ( https://www.bnbchain.org/en/blog/bnb-chain-tech-roadmap-2023/ )

Current Situation
Currently, Layer 2 (L2) solutions are becoming increasingly mainstream, offering users cheaper transaction fees compared to BSC’s Layer 1 (L1) fees. With L2 solutions gaining popularity, there is growing competitive pressure on the BSC network to maintain its market share. BSC transaction costs are currently set at a relatively high fixed rate of 5 gwei, which may not be as appealing to users as the more affordable fees provided by L2 solutions outside of the BSC ecosystem. This will ensure the existing and future BNB Chain L2 solutions remain competitive and keep attractive users in the ecosystem.

Over the last 6 months, the key measurements of the network have plateaued, creating a situation where the network is underutilized, with utilization varying between 15-20%. To prevent a slower pace of growth in comparison to rapidly growing L2 solutions, BSC validators should feel the urgency to reassess their current transaction fee structure.

I firmly believe adjusting the fees to be more cost-effective could help BSC maintain its market position and attract users looking for more affordable and efficient blockchain solutions.

I’ve created some simulations to demonstrate the potential uptick and the benefits of the adjustment.

BSC operational parameters:

  • Number of Blocks per day: 28,800
  • Gas Limit: 140M

As you can see below, network utilization can impact quite heavily the overall reward as we adjust the gas price:

  • With 20% block capacity at 5 gWei:

    • 28,800 * (140M*20%) * 5gWei = 4,032 BNB / Day
  • With 33% block capacity at 3 gWei:

    • 28,800 * (140M*33%) * 3gWei = 4,032 BNB / Day
  • With 50% block capacity at 2 gWei:

    • 28,800 * (140M*50%) * 2gWei = 4,032 BNB / Day
  • With 80% block capacity at 2 gWei:

    • 28,800 * (140M*80%) * 2gWei = 6,451 BNB / Day

Proposal
I propose that BSC validators adopt a more flexible approach towards transaction fees, enabling users to choose fees below the current 5 gwei rate, with options to go as low as 3 or 4 gwei, depending on their financial needs.

Automatically, this change would make BSC L1 more attractive than other ecosystems’ L2 solutions and provide a competitive advantage for potential BSC L2 solutions ( BSC L2 should have a target of < 0.005$/tx ). Furthermore, the upcoming Greenfield Decentralised Data Storage System will attract new users that is going to bring new traffic towards BSC.

Moreover, high transaction volume on BSC would still offer substantial value for BSC validators, maintaining a strong financial incentive to participate as validators. This approach would yield the following benefits:

  • Enhanced sustainability: Allowing projects to be more sustainable and providing a strong economic incentive for new projects to migrate to BSC. Lower transaction fees would help sustain the blockchain economy during low-volume periods.

  • Attracting new users: Offering lower fees on L1 with high throughput utilization could attract new users to the BSC ecosystem, promoting growth and improving BSC’s market position.

  • Optimized block utilization: By attracting new users, validators can better utilize each block’s capacity and increase their overall rewards.

As a validator to maintain a targeted return on investment, validators could consider raising the commission rate they receive from the validator’s earnings.

By implementing this proposal, both BSC L1 and L2 would benefit from increased competitiveness and market adaptability, creating a win-win solution for the entire ecosystem.

Conclusion
In conclusion, this proposal highlights the importance of adopting a more flexible and adaptive transaction fee structure on BNB Smart Chain (BSC) to better compete with Layer 2 solutions and attract new users. By allowing users to choose transaction fees less than the current 5 gwei rate, BSC can maintain a strong financial incentive for validators and promote a sustainable ecosystem. This approach would result in enhanced sustainability, attracting new users, and optimized block utilization, ultimately benefiting both BSC L1 and BSC L2. Implementing these changes would ensure the continued growth and competitiveness of the BSC ecosystem in an increasingly competitive market.

33 Likes

Are there any potential drawbacks or concerns with adopting a more flexible fee structure? eg. lower tx fee = more potential tx spam

2 Likes

how to get null bnb gas fee??
I need that!!!

3 Likes

We are working with Cocos on the optimistic L2 on BNBChain now. Decreasing Gas Fees on BNBChain will decrease L2 gas fees even lower, and L2 gas fees will be <0.005$. I believe, it can dramatically inspiring massive adoption.
NodeReal is ready to low down to 3Gwei.

7 Likes

As a regular user, I would be happy to see lower fees on the Binance Smart Chain network. For today, 5 gway is very expensive - in fact, the same L2 solutions have lower prices. For example, I transfer the values of USDT using the Matic network, since the commission there is very meager. But I would be happy to see low fees on the Binance Smart Chain network

2 Likes

I think this change should take place only after integrating MEV-Boost (or at that time), for the following reasons :

  1. There are a few validators who are currently unable to cope with the load. Once blocks are getting full, they start creating empty blocks frequently. This change will result in higher gas usage per block and consequently more empty blocks produced by these validators. For this to go smoothly they first need to upgrade their hardware. Alternatively, if you postpone this change until after MEV-Boost is integrated, this might solve the problem because the resource intensive block building will be performed externally by third-parties.

  2. MEV will help offset the revenue loss that is expected from this change.

  3. Integrating MEV-Boost is much more urgent. There are various scenarios where this change will not go out smoothly and it might be better to put the focus and resources on integrating MEV-Boost first.

4 Likes

Make enjoy with bsc and each transaction get burn amount token

1 Like

Ethereum is expensive but Arbitrum and Optimism is cheap, we need to push BNB L2 for cheap fees

1 Like

Good that lowering fees may increase adoption , hope don’t cause any network congestion. This can cause slower transaction times and longer wait times for users…

1 Like

The fees for transfering assets between wallets is fine but when it comes to interacting with smart contracts it’s far too expensive. We need to be considerate of our users in all our regions. Paying 0.$80+ to interact with a smart contract may seem like nothing if you’re dealing with 1k+ but there are many times where I want to sell and transfer 10$ worth of goods and I’m always rattled by the fees. I now leave my (small change) on cexs as managing it on BNBChain DEFi is too costly.

Interacting with smart contracts on other chains has become cheaper and a more viable option so I fully support this proposal. Let’s lower the gas fees. :100:

1 Like

Like my reaply to learn more with BSC :heart: :rocket:

2 Likes

Hello,
We will only indicate one need. Can transfer fees be paid with the transferred token and not with BNB? Can this be done?

Note: We will send the prize to our 4 random Twitter followers. #bitcointry

1 Like

It can be noted that BSC is an excellent analogue of the Ethereum network, since low fees, high transaction speed and the rapid development of the “infrastructure” of the network are what Binance Smart Chain clearly wins over the Ethereum network.

and yes, it is desirable to move away from the negative news that drown the market

1 Like

This plan to deploy a more flexible and adaptive transaction fee structure on BNB Smart Chain (BSC) is extremely based!

The current 5 gwei rate may be optimized, in order to better compete with other Layer 2 solutions and attract new users. In return, all users will have improved solvency, informed decision-making, and network utilization.

This increased overall sustainability, better scalability and block utilization will help BSC survive in such a fierce market. Permitting these changes would guarantee the continuing success of the BSC system.

Kind regards

1 Like

I need that!!!
nice bnb chain

1 Like

As i am FRENCH i did not get every precise topic but overall, the validators would have to accept a % loss of gas fee but it would drive a lot more or transaction of all BNB lovers on the blockchain so finally WE would grow a stronger ecosystem!!

1 Like

By improving transaction processing and network performance, auditors can reduce fees, This can be achieved through network upgrades and the adoption of more efficient verification techniques.

2 Likes

Lower transaction fees are inevitable. BSC is mainly used for gaming and defi. Those verticals require a fast, robust and inexpensive network.
If we want to convince new users to try Web3, we need to give them a painless service like banks do. Using BSC should be close to 0$ without compromising the performance.
If tx fees go down on BSC, it will be a competitive advantage when BNB Rollups will be on mainnet.

The forecast seems conservative. It does not take into account the fact that we are approaching the next halving.

I approve this proposal.

2 Likes

Hello community,

As an admin at TWTStake, a project focused on providing a seamless and rewarding staking experience on the Binance Smart Chain. I’m fully support this proposal for adopting a lower transaction fee cost on the BNB Smart Chain to enhance competitiveness.

As a dApp developer, I understand the importance of a better user experience, and lowering transaction fees is a crucial factor in improving that experience. This proposal not only makes BSC more attractive to new users but also encourages existing users to interact more with the ecosystem. We believe that implementing the suggested changes would make BSC more accessible and competitive, ultimately benefiting all projects and users within the ecosystem.

The examples provided in the proposal demonstrate the potential benefits of adjusting the fees, and we believe that adopting these changes can significantly impact the growth and success of projects like ours on the BSC.

In conclusion, TWTStake stands behind this proposal, and we encourage the BSC validators and community to consider and support these changes. Let’s work together to make BSC the most successful blockchain ecosystem.

Thank you for your attention,
TWTStake Admin

2 Likes

Since BSC’s high gas fees have led to a decline in network activity and the claims that BSC’s utilization is around 15-20% ,could also worsen the network.

Validators reducing their fees would make BSC L1 more attractive than other ecosystems’ L2 solutions and provide a competitive advantage for potential BSC L2 solutions.

Validators would also benefit from this as it would bring more transaction volume to the network. Well this will give them financial incentive to continue participating as validators.

2 Likes