BNB Chain to Introduce Native Liquid Staking on BSC
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Embracing Innovation with Liquid Staking on BSC
As the BNB Chain prepares for a significant change, the core development team has revealed intentions to activate liquid staking directly on its BNB Smart Chain (BSC). This decision aligns with the impending shutdown of the BNB Beacon Chain, set for June 2024.
The shift aims to streamline network operations and enhance efficiency, aligning with the organization’s growth plans to make the BNB Chain more appealing to users. By migrating Beacon Chain functions to BSC, BNB Chain seeks to reduce security risks while meeting current technological demands.
Moreover, ecosystem participants can help maintain the network’s security and keep their assets liquid. Thus, users can participate in decentralized finance activities without losing the utility of their crypto assets. Although it didn’t specify a rollout date for the liquid staking feature, the BNB Chain team anticipates its implementation in April or May.
Introducing MEV Optimization on BSC
In addition to liquid staking, the BNB Chain will introduce maximum extractable value (MEV) optimization, allowing validators to enhance their staking returns by earning revenue in MEV tokens. In addition, holders can delegate their BNB tokens to a liquidity pool or the validator.
Liquidity staking rewards BNB stakers and enhances security for the BNB Chain network. It also offers increased flexibility in staking assets and opens up more options for BNB staking.
Validators for the MEV protocol will have the opportunity to augment staking profits through MEV tokens, ultimately contributing to liquidity staking rewards. By rolling out liquid staking and MEV optimization simultaneously, BNB Chain aims to maximize user engagement.
Binance Burns Over $1.17 Billion in BNB Tokens
Meanwhile, Binance has completed its 27th quarterly token burn, removing 1.94 million Binance Coin (BNB) worth $1.17 billion from circulation. These BNB tokens removed from circulation constitute approximately 1.3% of the total BNB supply.
Despite the sizable reduction in circulating supply, the market response was muted, with BNB’s price experiencing a marginal decrease of 0.9% to $600 within 24 hours of the announcement, according to CoinMarketCap. Conversely, BNB’s price surged 13% this past week despite looming regulatory concerns surrounding Binance. Reports emerged that the US was considering imposing a three-year jail sentence on Binance founder Changpeng Zhao.
Regulatory Uncertainty Looms
Despite these challenges, Binance remains committed to its quarterly token burn program, aiming to remove 100 million BNB tokens or half of the coin’s entire supply, through regular burns. Notably, this burn program started since BNB’s inception in 2017.
The burn process is automated and follows an auditable and transparent process, ensuring its independence from the centralized exchange. This token burn is the latest after January’s token burn event, where Binance removed approximately 2.14 million BNB tokens, valued at $636 million, from circulation.
Following the reduction in circulating supply, BNB’s market capitalization is up 2.25%, settling at over $90 billion. However, its 24-hour trading volume witnessed a drop of 4.8%. Besides the quarterly token burns, the BNB Chain team continuously burns a portion of the blockchain’s gas fees to further contribute to the reduction in supply.
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