BNB Chain has altered its transaction-fee policy after years of efforts to make blockchain transactions cheaper. The network has decided that future revenue will play an increasingly important role in developing and maintaining blockchain infrastructure.
As Nina Rong, Growth Director of BNB Chain, stated in her presentation on September 6, reducing gas fees is not a top priority for the network anymore. According to Nina Rong, blockchain projects require a sustainable business model that allows generating revenue using gas fees and revenue-sharing.
BNB Chain Moves Beyond the Fee War
Over the past few years, BNB Chain has worked on reducing transaction costs to encourage users and developers to participate. It managed to reduce transaction costs by up to 0.05 Gwei, and costs have been reduced by more than 90% compared to previous times.
But according to Rong, it is high time that the industry takes an entirely different approach. Instead of focusing too much on grants and reduced transaction costs, the industry needs to focus on revenue-generating models.
She made her remarks as the crypto space keeps debating transaction fees on Robinhood Chain. This recently launched blockchain has drawn criticism due to high fees of up to $0.40.
On the other hand, Robinhood Chain refers to its income-sharing program with the Arbitrum ecosystem, where the chain splits 10% of its revenue: 8% is shared with the Arbitrum DAO treasury, and 2% goes to development.
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Revenue Sharing Could Shape the Next Blockchain Race
The solution offered by Robinhood Chain is one way in which such a blockchain network can link its expansion with the rest of the ecosystem.
Through sharing its revenue with the Arbitrum network, Robinhood Chain enables the DAO and the developers behind the project to receive financial gains from the expansion of the chain. This helps create a system wherein transaction activity could help the whole network rather than just reducing fees.
BNB Chain, on the other hand, would be making a logical shift in its strategy after years of continuously cutting its transaction fees. It has managed to attract many users thanks to lower costs, and it might not get much additional benefit from lowering its prices further compared to before.
It is possible that the next level of competition will no longer be about who charges lower gas fees, but rather about sustainability.
If this model gets further adoption, it can happen that gas fees will not only be perceived as a fee by the user anymore but will become an additional revenue stream for the blockchain ecosystem and the associated infrastructure.
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