BNB Chain has put forward a new proposal aimed at reducing the liquidity of its token, which could serve an important purpose. If this proposal is accepted, it could have a significant impact on the price of the token.
BNB Chain presented a proposal in the Venus forum. According to the official post, the proposal aims to give BNB Chain the authority to seize collateral from the violator of the BNB bridge and pay debts while avoiding any market liquidation. Additionally, a secure debt reduction plan was proposed to address the vulnerability in the Venus Protocol. The proposal also mentioned that the violator owes a balance of 630,240.00 BNB as well as 58,440,000 USD Coin (USDC) and 37,440,000 Tether (USDT).
As the proposal aims to reduce liquidity, less liquidation can generally mean less volatility, which could positively affect the price of BNB. At the time of writing, BNB had experienced a 2% decrease over the past 24 hours. It was trading at $241.66 and had a market value of $36.6 billion, making it the fourth-largest cryptocurrency.
While the price of the token was falling, the funding rate was also decreasing. This could mean that futures investors were not purchasing BNB at a low price during the report, which could indicate the potential for an upcoming trend change. In addition to the mentioned proposal, BNB Chain also published a tweet announcing their weekly reports. Notably, BNB’s weekly transactions stood out with an average of 36.89 million transactions per day over the last seven days.
The blockchain’s weekly average user count was 3.24 million, with an average daily user count of 959,000. Alongside the statistics, the report also detailed some new dApps launched on the blockchain. Among these dApps were Hacash and Openfort operating in the infrastructure sector, and Gabby World, a Social Fi dApp.
