- Malta-based digital asset exchange Binance had launched a non-custodial crypto trading platform a few months back.
- Binance, the world's largest exchange in terms of trading volume, has decided to reduce transactions fees on its decentralized crypto trading platform (DEX).
Voting For Lower Fees On Binance's Non-Custodial Exchange
One of the most exciting products that have launched in the cryptocurrency world in the last few months is Binance DEX, which is Binance’s decentralized exchange. Since its launch, the exchange has received a lot of praise from users and others within the industry.
Now Changpeng Zhao (“CZ”), the CEO of Binance, has announced that Binance DEX will be making some new changes and adjustments. According to a blog post, there was a recent surge recorded by BNB and as a result, the validators of the network collectively voted for a lowering of the fee structure and this led to a reduction in fees by about 50 percent. The changes in question were implemented and the first block will become active after June 13, 2019.
This development is quiet beneficiary to Binance's a larger customer base can be drawn towards the platform since the low fees will encourage people to join and this, in turn, this will help crypto adoption.
Details About The Development
Official details have been released and fees have been lowered to 0.000375 BNB from 0.000625 BNB. Burn access fees were also reduced to 0.5 BNB after previously being 1 BNB. Listing fees also dropped to 1000 BNB after being 2000 BNB previously. A reduction was also seen in the IOC fee, multi-send and freeze/unfreeze fee. This is a deliberate effort to attract customers who are currently making use of other exchanges that offer higher fees and there has already been a response from them.
HitBTC, for example. has been criticized by the crypto community on Twitter for their own high fees, particularly in comparison to Binance fee structure.
“HitBTC fees are insanely ridiculous. Also… HitBTC is a SCAM!” A Twitter user said.
“Yup. hitbtc your fees are asinine. I no longer trade there. Another Cryptopia waiting to happen,” said another.
The Battle Of The Fees
What is peculiar about the crypto industry is that there is somewhat of an ongoing war to achieve the lowest possible fees for various transactions among crypto companies. For example, cross-border transactions have been traditionally quite pricey but cryptocurrency companies have found a way to transfer even millions of dollars while charging little in transaction fees.
This has led to this payment processing method being picked up by a number of bigger firms such as Ripple and R3 being adopted by larger companies for cross-border transactions. It also makes them much more appealing to users who want to take advantage of the low fees being offered.
This is somewhat the case with Binance as them choosing to reduce they are transaction fees by such a great amount will help them in acquiring customers who might have previously opted for one of their competitors. In all, crypto consumers have the most to gain as they will be able to access much many more services for low prices.
It also has huge implications for the future of even traditional finance as if the crypto industry is able to achieve the adoption it seeks and is on the level to compete with mainstream financial firms, a lot of consumers with likely opt for crypto companies as they are looking to reduce transaction fees across-the-board and not increase them.