Binance Smart Chain Suffers Technical Issues with DOOD Token Transactions, GMGN Lianchuang Promises Full Compensation

GMGN Lianchuang co-founder Haze has committed to compensating users who suffered losses due to technical issues with DOOD token transactions on the Binance Smart Chain. The market impact was swift, with DOOD trading volume decreasing by 14.72%. The incident underscores the DeFi sector's vulnerability to technical glitches and highlights the need for robust technical systems in decentralized finance.

Binance founder and former CEO Changpeng Zhao (CZ) has proposed a significant reduction in Binance Smart Chain (BSC) gas fees, aiming to enhance user experience and spur DeFi growth. The current gas fees on BSC range from 1.0 to 1.3 Gwei, with higher fees during network congestion [1]. CZ's proposal suggests reducing these fees by up to 10x, which could make BSC more attractive for decentralized applications (dApps) and transactions.

BSC gas fees are generally lower than those on the Ethereum network, making it popular for DeFi and gaming sectors. However, CZ acknowledges the challenges associated with low gas fees, such as network spam and ensuring validator incentives remain intact. He proposes a reduction to balance these concerns while avoiding zero gas fees, which could overwhelm the network due to a lack of cost deterrence.

The potential impact of lower BSC gas fees could be significant. Lower fees could draw more volume and activity to the BSC, similar to the effect seen on the Tron blockchain after reducing gas fees by 50% [2]. This could boost the DeFi sector, which relies heavily on low transaction costs.

However, the success of this proposal depends on the balance between cost reduction and network integrity. CZ's proposal aims to address these concerns, but the actual implementation and its impact on the BSC network remain to be seen.

References:
[1] https://en.coinotag.com/cz-proposes-up-to-10x-reduction-in-binance-smart-chain-gas-fees-to-enhance-user-experience-and-boost-activity/
[2] https://coincu.com/336693-doodles-dood-token-launch/