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BNB’s Decision to Halve Fees Ignites Discussion: Balancing User Expansion and Validator Rewards

BNB’s Decision to Halve Fees Ignites Discussion: Balancing User Expansion and Validator Rewards

Bitget-RWA2025/09/24 15:31
By:Coin World

- Binance founder CZ proposed a 50% fee cut on Binance Chain, sparking a 3% surge in BNB to $1,013.17 amid reduced gas fees and shorter block times. - The move aims to boost competitiveness against Solana and Base by lowering transaction costs to $0.001, following prior 75% fee cuts that increased daily transactions by 140%. - Technical indicators show bullish momentum with BNB above key moving averages, while on-chain activity and staking APY stability signal strong user adoption and network growth. - Cri

BNB’s Decision to Halve Fees Ignites Discussion: Balancing User Expansion and Validator Rewards image 0

BNB jumped 3% within a day after Binance co-founder Changpeng Zhao (CZ) suggested halving transaction fees on Binance Chain. By 12:05 a.m. EST on September 23, 2025, BNB was trading at $1,013.17, even as daily trading volume fell 9% to $4.14 billion. The proposal seeks to lower gas fees from 0.1 Gwei to 0.05 Gwei and reduce block times from 750 milliseconds to 450 milliseconds, bringing average transaction costs down to about $0.001. This follows earlier fee reductions in April 2024 and May 2025, which already slashed fees by 75% and pushed daily transactions up 140% to 12 million. The initiative is designed to make

Chain a strong rival to affordable networks such as and Base, though it could mean lower rewards for validators BNB Price Climbs 3% As CZ Backs 50% Fee Cut on Binance Chain [ 1 ].

From a technical standpoint, BNB continues to show strength above major moving averages. The price is holding above the 50-week ($690.85) and 200-week ($445.66) simple moving averages, indicating a bullish trend. Important support levels are now at $900 and $800, with $900 shifting from resistance to a possible support base. The Relative Strength Index (RSI) is at 71.77, approaching overbought conditions, while the MACD remains positive, with the blue line well above the orange signal line. Experts foresee a possible retest of the recent $1,083 high, and a decisive move above that could pave the way to $1,200 if buying interest remains strong BNB Price Climbs 3% As CZ Backs 50% Fee Cut on Binance Chain [ 1 ].

On-chain metrics have climbed following the fee reduction news. Both wallet addresses and transaction counts on Binance Chain have grown sharply, signaling increased user activity. The focus on lower fees fits with the chain’s broader goal to lead in trading volume, as swap transactions now make up 67% of BSC’s total, up from 20% in January 2025. Staking APY remains steady above 0.5%, a key figure for validators when considering fee changes. If the proposal is accepted, the updates could roll out by the end of the year, potentially sparking a bullish run in the fourth quarter BNB Chain eyes ultra-cheap fees as validators propose 50% gas reduction [ 2 ].

This fee reduction is part of a broader, multi-year push to lower costs. Previously, BNB Chain cut gas fees from 3 Gwei to 1 Gwei in April 2024, and then to 0.1 Gwei in May 2025. These changes reduced median fees from $0.04 to $0.01, a 75% drop. The current proposal would bring gas fees down to $0.005 per transaction, making them competitive with Solana and Base. Supporters believe these changes will drive adoption, especially among trading platforms that dominate BSC’s activity. However, the proposal still needs approval from the Binance Chain community before it can be implemented BNB Chain eyes ultra-cheap fees as validators propose 50% gas reduction [ 2 ].

CZ’s public support has further boosted market confidence. His tweet promoting the 50% fee cut included a link to the proposal, highlighting his dedication to keeping Binance Chain competitive. CZ has previously championed aggressive fee reductions, such as a 90% cut proposed in May 2025, which pushed BNB to $642.92. While the current plan focuses on gradual improvements, CZ’s history of prioritizing user-friendly fees suggests more changes could come. Analysts warn that while BNB is holding above key support, a drop to $900 or $800 could provide buying opportunities for long-term investors BNB Surges to $642 After CZ’s 90% Fee Cut Plan [ 3 ].

The market’s reaction has been mixed. The 3% price gain shows optimism, but some point out that lower validator rewards could weaken incentives for network security. On the other hand, the spike in transaction volume and DeFi total value locked (TVL) to $8 billion—the highest since January 2024—signals strong demand for cheaper transactions. BNB’s technical indicators, including a bullish MACD and an RSI close to overbought, point to continued upward momentum. Still, a pullback is possible if BNB fails to stay above $900, which could lead to a test of the $800 support area BNB Price Climbs 3% As CZ Backs 50% Fee Cut on Binance Chain [ 1 ].

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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