BNB's 50% Fee Cut Sparks Debate: User Growth vs. Validator Incentives

BNB surged 3% in the 24 hours following Binance co-founder Changpeng Zhao’s (CZ) proposal to cut fees on the Binance Chain by 50%. As of 12:05 a.m. EST on September 23, 2025, the token traded at $1,013.17, despite a 9% drop in daily trading volume to $4.14 billion. The proposal aims to reduce gas fees from 0.1 Gwei to 0.05 Gwei and shorten block times from 750 milliseconds to 450 milliseconds, pushing average transaction costs down to approximately $0.001. This follows prior reductions in April 2024 and May 2025, which already cut fees by 75% and boosted daily transactions by 140% to 12 million. The move is intended to position BNB Chain as a competitive alternative to low-cost networks like Solana and Base, though it may reduce validator rewardsBNB Price Climbs 3% As CZ Backs 50% Fee Cut on Binance Chain^[1].

Technical analysis highlights BNB’s strength above critical moving averages. The price remains above the 50-week ($690.85) and 200-week ($445.66) simple moving averages, signaling bullish momentum. Key support levels are currently at $900 and $800, with the former having transitioned from resistance to a potential floor. The Relative Strength Index (RSI) stands at 71.77, nearing overbought territory, while the MACD remains bullish, with the blue line well above the orange signal line. Analysts suggest a potential retest of the recent high of $1,083, with a clean break above this level opening the door to $1,200, provided buying pressure persistsBNB Price Climbs 3% As CZ Backs 50% Fee Cut on Binance Chain^[1].

On-chain activity has surged in response to the fee cuts. Wallet addresses and transaction volumes on Binance Chain have risen significantly, reflecting heightened user engagement. The proposal’s focus on reducing fees aligns with the chain’s broader strategy to dominate trading activity, as swap-related transactions now account for 67% of BSC’s total volume—a jump from 20% in January 2025. Staking annual percentage yield (APY) remains stable above 0.5%, a benchmark validators use to assess sustainable fee adjustments. If approved, the changes could be implemented by year-end, potentially fueling a Q4 bull runBNB Chain eyes ultra-cheap fees as validators propose 50% gas reduction^[2].

The fee reductions are part of a multiyear effort to lower costs. BNB Chain previously slashed gas fees from 3 Gwei to 1 Gwei in April 2024 and further to 0.1 Gwei in May 2025. These cuts drove median fees from $0.04 to $0.01, a 75% decline. The latest proposal, if enacted, would bring gas fees to $0.005 per transaction, a level competitive with Solana and Base. Proponents argue that the changes will enhance adoption, particularly among trading applications, which dominate BSC’s network usage. However, the proposal requires validation from the Binance Chain community before final implementationBNB Chain eyes ultra-cheap fees as validators propose 50% gas reduction^[2].

CZ’s endorsement has amplified market sentiment. His tweet advocating for the 50% fee cut was accompanied by a link to the proposal, underscoring his commitment to maintaining Binance Chain’s competitiveness. The founder has previously supported aggressive fee reductions, including a 90% cut proposed in May 2025, which saw BNB surge to $642.92. While the current proposal focuses on incremental improvements, CZ’s track record of prioritizing user affordability suggests further adjustments may follow. Analysts caution that while the price remains above key support levels, a pullback to $900 or $800 could offer entry points for long-term investorsBNB Surges to $642 After CZ’s 90% Fee Cut Plan^[3].

The market response has been mixed. While the 3% price increase reflects optimism, some observers note that reduced validator rewards could dampen network security incentives. Conversely, the surge in transaction volume and DeFi total value locked (TVL) to $8 billion—its highest level since January 2024—indicates robust demand for cheaper transactions. BNB’s technical indicators, including a bullish MACD and RSI near overbought levels, suggest continued upward momentum. However, a correction remains a risk if the price fails to hold above $900, which could trigger a test of the $800 support zoneBNB Price Climbs 3% As CZ Backs 50% Fee Cut on Binance Chain^[1].