Binance’s CZ aka Changpeng Zhao made quite a few announcements in his first AMA for 2020. The AMA revolved around Binance DEX which runs on the Binance Chain. Among other updates, CZ also spoke about listing fees for projects on DEX, fees that are said to start at a whopping $100,000.
Binance Chain
Binance has established itself as one of the most important players in the cryptocurrency ecosystem. This is mainly due to the fact that the platform lists a plethora of projects, while providing innovative products for its users. In addition to that, Binance, which announced its decentralized exchange in March 2019, has shared some major updates regarding the same.
Binance Chain is moving to a staking atmosphere and has chosen Cosmos and Tendermint for the same. On why Binance chose Cosmos for Binance Chain, CZ said,
“Cosmos had the closest thing we were looking for. They had a solid product, the Cosmos architecture was the closest to what we wanted… we took Tendermint and we made a fork out of it.”
DEX
CZ went on to say that the Chain will focus on handling more throughput, rather than providing more features. As for the transaction capabilities, CZ said that off the bat, it will be “a couple thousand;” the tps can be scaled in the future based on requirements. Expanding on the throughput capacity, CZ said,
“… right now, the Binance DEX, the decentralized exchange, can handle our existing Binance.com volume. We designed the DEX so it can handle the capacity on the centralized exchange.”
CEO CZ also said that there will NOT be a smart contract feature. However, Zhao clarified that there will be a feature that allows people to issue tokens and trade them. The testnet, according to CZ, will have 11 test nodes, adding that the small number of validators is due to performance reasons. Moreover, the testnet will have the capability of producing 1 block per second. Unlike before, the beta access will be available to the public [in a week] and users need not apply for special access.
The CEO went on to make it sufficiently clear that Binance is trying to avoid spam projects that are plaguing the crypto-industry. According to CZ, the listing fee will be slightly higher on DEX and that this is on purpose. In the words of CZ, the purpose behind the same is,
“.. so we reduce the number of spam or scam projects. And there’s also a voting process by the validators to be listed on the DEX. I think the fee will be probably close to $100K US, so we’ll see but the fee is adjustable over time.”
