Changpeng Zhao (CZ), the founder and former CEO of Binance, recently suggested reducing BSC gas fees by 3X or 10X. Within a day, Binance Smart Chain cut gas fees by 10X, resulting in a significant 90% decrease that greatly benefited builders and users. The Core Development team of BNB Chain revealed the process behind this substantial gas fee reduction, which involved lowering the gas fee from 1 Gwei to 0.1 Gwei. They explained the governance dynamics, market incentives, and the chain's strategic shift in the Layer-1 versus Layer-2 competition.

While CZ's tweet appeared to ignite the reduction in BSC gas fees, it was actually the validators who made the final decision. The validators, who manage network demand and protocol economics, responded to CZ's proposal but independently chose to lower the gas fees. This move was driven by changing validator sentiments and user expectations, not by competition from other blockchain networks.

The decreased gas fees on BSC were not inspired by Ethereum's Layer-2 rollups or Solana's fee advantages but were a result of community feedback and market dynamics. Although some platforms may still operate with higher fee settings, the overall trend is towards lower gas fees to improve market efficiency.

Binance Smart Chain's ecosystem includes a two-layered approach with opBNB, a high-speed Layer-2 network offering high transaction throughput and low costs. This architecture positions BNB Chain to compete effectively in both Layer-1 and Layer-2 environments, catering to different types of applications and scalability needs.

The sustainability of the reduced gas fees depends on network activity and validator decisions. With BSC utilization at around 20%, congestion risks are low, but pricing remains flexible and subject to change based on market conditions. This market-driven pricing model enables BNB Chain to adapt to evolving circumstances effectively.

The reduction in gas fees on BSC, initially suggested by CZ, evolved into a community-driven initiative that underscores BNB Chain's adaptability and governance structure. With the rise of DeFi and stablecoins and the potential of opBNB to enhance transaction throughput, the 90% reduction in gas fees signifies not just reduced costs but also potential growth for the network. As of the latest update, the price of BNB token was $665.49, showing a slight increase of 1.48% in the last 24 hours.