CZ Comments on BNB Chain’s Proposed L1 and Shared-Token Plan
BNB Chain is developing a separate blockchain, provisionally called New L1, for applications that need faster, more predictable transaction processing than BNB Smart Chain (BSC) is designed to offer. The proposal would use BNB on both networks, but it remains in development. It is not yet evidence of higher BNB demand or a live network users can rely on.
- New L1 is planned to run alongside BSC, not replace it.
- BNB would pay fees; staking would generate non-transferable governance rights.
- Targets include 200-millisecond blocks and pre-confirmations in about 20 milliseconds.
- A public testnet is targeted for the end of 2026; mainnet is targeted for early 2027.
- The bridge and privacy features are unfinished, and the schedule could change.
Changpeng Zhao, Binance’s founder, responded to discussion of the decision not to issue a separate token with the phrase:
“Multiple chains, one coins, ”
His comment reflects the proposed shared-asset approach, but it does not amount to an endorsement of every technical detail. BNB Chain’s updated technical documentation, published on October 22, describes BNB as the planned gas, staking, and governance asset on both networks. The year of publication is not specified in the information available here.
A separate chain for different workloads
New L1 is described as an EVM-compatible blockchain. The Ethereum Virtual Machine (EVM) runs Ethereum-style smart contracts, so compatibility is meant to help developers use Solidity contracts and familiar tools. It will not provide full compatibility: BNB Chain says some Ethereum RPC methods and transaction types will be unsupported.
The proposed division of roles is simple. BSC would keep supporting its existing decentralized finance applications, trading platforms, and other services. New L1 would focus on workloads that need low latency and more predictable transaction handling, including high-frequency trading, decentralized order books, and payments.
One proposed feature, called Multi-Lane, would reserve processing capacity for selected types of transactions. The goal is to reduce competition for capacity among different applications. The documentation does not show how well that approach will work on a public network.
The design also separates transaction ordering from execution. In plain terms, validators could agree on the order of transactions before the network finishes processing them. This is intended to speed up agreement on ordering, but ordering and execution remain separate milestones.
BNB Chain says its internal development network, which uses multiple validators, is producing blocks and reaching end-to-end finality. The public testnet and mainnet have not launched.
Pre-confirmation is not final settlement
The documentation targets a block every 200 milliseconds, pre-confirmations in approximately 20 milliseconds, and transaction-order finality in under one second. The finality target means validators agree on transaction order, using an enhanced version of BNB Chain’s Parlia consensus mechanism with BLS voting. BLS is the voting method named in the documentation, which provides no further implementation details in the information available here.
A pre-confirmation is an early signal that a transaction is likely to be included. It is provisional and can be revoked before finalization if the network does not confirm it. Transaction-order finality comes later, when validators have finalized the agreed order. Execution finality concerns the result of processing the transaction. The documentation says applications handling irreversible transfers should wait for execution finality instead of relying on a pre-confirmation.
The distinction matters. A fast preliminary signal can make an application feel more responsive, but it does not guarantee that an irreversible transfer is complete.
BNB, staking, and the unfinished bridge
Under the proposal, BNB would pay transaction fees and be used for staking on both chains. Staking BNB would generate govBNB at a one-to-one ratio. The documentation describes govBNB as a non-transferable voting right. BNB is the asset being staked, while govBNB represents the related governance rights.
A native bridge is planned to let users transfer BNB from BSC to New L1, but development is still underway. The documentation does not yet provide enough detail to assess the bridge’s final design or security. A shared token does not make transfers between blockchains automatic or remove the risks of bridging assets.
Using one asset across two networks could avoid adding another token to the mix. But it does not prove New L1 will create additional demand for BNB. Activity could grow, shift away from BSC, or develop without materially changing how the token is used.
Privacy and account features remain in progress
New L1 is also designed to support account abstraction, a set of features that can let an application cover transaction fees or combine several operations into one user action.
The proposed privacy feature is a shielded pool for confidential transfers. The available documentation does not specify exactly what transaction information would be concealed. It says the system needs security audits and more trusted-setup work, a setup process required by the design, before production use. BNB Chain warns users not to put real funds into the current shielded pool. That warning comes alongside broader security concerns around BNB Chain.
Performance targets are not live results
New L1 is one part of BNB Chain’s effort to improve performance. A January report from crypto.news described a 2026 BSC roadmap targeting 20, 000 transactions per second. Parallel execution and Rust-based infrastructure were among the approaches named. The year of that January report is not specified in the information available here. This is a BSC roadmap target, not a demonstrated result for New L1.
Separately, crypto.news reported that the August 25 Pasteur hard fork changed BSC’s block-building process and strengthened validator authorization and bridge verification. The year of that date is not specified in the available information. Controlled testing of the Pasteur changes reportedly raised throughput from 1, 237 to 2, 324 transactions per second.
Those figures come from a controlled test, not confirmed performance on a live network. The report does not specify the transaction mix or testing environment, which makes comparisons with other benchmarks or real-world usage difficult. Live results can vary with traffic, network conditions, and application workloads.
BNB Chain is pursuing two tracks: upgrading BSC and developing a separate network for workloads with different performance needs. That could give developers more options, but it also adds infrastructure to maintain, secure, and explain. The testnet should offer a better measure of the design’s performance than an internal development network.
Key questions about BNB Chain’s New L1
-
Will New L1 replace BNB Smart Chain?
No. BNB Chain plans for the networks to run alongside each other, with BSC continuing to support its existing applications and services.
-
What does govBNB do?
Staking BNB is intended to generate govBNB at a one-to-one ratio. The documentation says govBNB is non-transferable and provides voting rights.
-
When can the public test New L1?
The documentation targets a public testnet for the end of 2026 and mainnet for early 2027. These are target dates, the schedule could change, and neither launch has taken place.
-
Is the shielded pool ready for real funds?
No. BNB Chain warns against using the current version with real funds while audits and additional trusted-setup work remain outstanding.
-
Are the speed targets proven?
No. They are targets in the technical documentation. The internal development network is running, but performance on a public network has not been demonstrated.
New L1 is a proposed extension to BNB Chain, not a live network or a guarantee of higher BNB demand. Its public testnet, bridge design, security work, and performance under real-world use will show whether it can meet its targets.
