BEP-95 is a Binance Evolution Proposal aimed at incorporating a real-time burning mechanism into BNB Chain. This addition is intended to enhance the BNB's tokenomics and promote decentralization within the network. 
BEP-95 passed and went into effect on November 30, 2021. The proposal introduced a fixed ratio of burning a portion of each block's gas fees collected by validators on the BNB Chain. The specific ratio was to be determined through BNB Chain's governance mechanisms. This burning process would continue even after the chain achieves its target of 100 million BNB tokens. 
By reducing the BNB supply, there could be upward pressure on the coin's price. As a potential consequence, BNB delegators and validators might receive reduced amounts of BNB. However, the increase in the coin's fiat value due to upward price pressure may offset any reduction in the number of coins received. 
BNB is designed as a deflationary token, with its supply capped at 200 million tokens due to the absence of a mining algorithm issuing more BNB. Around 100 million tokens were issued during Binance's ICO in 2017. Regular token burnings have been scheduled by Binance. BNB serves as a utility token within the expanding DeFi ecosystem on BNB Chain.
As part of BEP-95, the gas fees are collected and directed to two smart contracts:
System Reward Contract
The System Reward Contract is designed to hold a maximum of 100 BNB. If the holding falls below this limit, 1/16 of the gas fee used in transactions is sent to the contract. The funds within this contract are utilized for "cross-chain package" subsidies. 
The remainder of the gas fees are held within the ValidatorSet contract. The contract is responsible for issuing gas fees for validators and/or delegators within the BNB network. These funds are further directed to the Binance Chain and further split amongst the validators. 
To conduct a burn, the ValidatorSet Contract has a
burnRatio variable. Upon finalizing each block, a validator signs a transaction transferring its gas fees to the smart contracts. The deposit function contains burning logic that triggers the formula:
burnRatio * gasFee. This sum is then transferred to the burn address. The
burnRatio is initially be set at 10%. 
BSC Validators are able to vote via proposals to change the
burnRatio amount. Any community member can submit a proposal for review with a minimum deposit of 2,000 BNB. All BNB staked behind a proposal and in a vote is returned after a decision has been made. Quorum is reached at 50%, and the change will be implemented via cross-chain communication immediately. 
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