Binance Smart Chain (BSC) is a highly regarded blockchain platform for deploying smart contract-based applications such as NFT marketplaces, decentralized finance (DeFi) platforms, gaming applications, and decentralized exchanges (DEXs). As it runs parallel with the Binance Chain, developers get both the smart contract functionality of BSC as well as the high transaction capacity of BC. This combination makes it a popular choice for developers, especially for token creation.
If you’re considering developing a token on BSC, you may be wondering about the total cost involved. Typically, token development cost on BSC can range from approximately $2000 to $50,000 or even more, as the final cost can vary significantly based on multiple factors. This guide breaks down the factors that influence these token development costs and offers practical insights into the intricacies of token development on BSC.
Different Token Standards on Binance Smart Chain
Before directly diving into the cost structure, let’s first understand a little bit about the different standards used on the Binance Smart Chain.
BEP2 Token Standard
BEP2 (Binance Chain Evolution Proposal 2) is the token standard for the Binance blockchain, designed to carry faster transactions within the Binance ecosystem. It bears a lot of similarities to the Ethereum blockchain’s ERC-20 token standard. But this Binance Smart Chain token does not support smart contracts like BEP20 tokens do. It can be readily converted into BEP20 tokens and is therefore frequently used exclusively for trading within Binance’s ecosystem.
BEP20 Token Standard
BEP20 is the most commonly used token standard on BSC. It is similar to Ethereum’s ERC20 standard, which is why it isn’t only compatible with Binance Chain’s BEP2 but Ethereum’s ERC20 as well. BEP20 tokens are leveraged for DeFi applications, NFTs, staking, and other blockchain-based functionalities. Additionally, BEP20 standards also support the development and deployment of BSC tokens.
BEP721 Token Standard
Binance Smart Chain supports BEP721 standards to create NFTs (non-fungible tokens), just like Ethereum’s ERC721 standard. Thus, BEP721 tokens are unique digital assets used in NFT marketplaces.
BEP1155 Token Standard
BEP-1155 supports the development of both fungible and non-fungible tokens, too, in one single smart contract. This standard is used in gaming applications where just one smart contract can support all types of tokens.
Advantages Of Developing Tokens On The Binance Smart Chain
Binance Smart Chain is being heavily leveraged for token development due to the following perks offered by BSC:
One of the biggest benefits of choosing Binance Smart Chain for token development is its low transaction cost and lesser on-chain expenses. Furthermore, compared to Ethereum, BSC has much lower gas prices.
- Binance Smart Chain is rapidly gaining popularity due to Binance’s existing user base and its unique capabilities.
- Binance’s support not only provides popularity but also offers extensive technical and financial resources for BSC.
- Due to the availability of different cross-chain bridges, Binance Smart Chain tokens can be easily transferred between blockchain networks.
Factors Influencing BSC Token Development
The cost of developing a token is important when deploying a token on the Binance Smart Chain. Here is the list of all the factors that collectively vary the total cost of the token development project:
Smart Contract Development
The primary stage of BSC token development is the creation of smart contracts. Further, as the complexity level of smart contracts increases, more resources, expertise, and time are required to build tokens. Together, this raises the price of developing tokens for the Binance Smart Chain.
- A basic BEP20 token with a specific value and basic functions such as minting, transfer, and transfer can cost between $500 and $5,000 to develop.
- Sophisticated smart contracts responsible for operations such as staking, governance mechanisms, yield farming, and other functions can cost $5,000 to $10,000 or more to develop.
- For NFT-based projects utilizing BEP721 or BEP1155 standards, additional functionalities such as royalties, metadata storage, and asset management increase development costs. Depending on the required features, development can cost anywhere from $10,000 to $30,000 or more.
Security Audits and Testing
Not just development but auditing is also important to ensure the security of developed tokens. Even a minor error in the smart contract can lead to irreversible consequences and financial losses. Thus, the initial investment in smart contract auditing can help avoid significant losses resulting from smart contract exploitation.
Basically, an automated audit for scanning basic vulnerabilities can cost $500 – $1,500. But, a manual audit that includes expert review and bug detection can cost anywhere from $6,000 to $20,000 or more.
Gas Fees for Token Deployment
Gas fees are needed to deploy a smart contract on BSC and carry out operations on the blockchain. Since BSC has lower gas fees than Ethereum, it is a more cost-effective option. Typically, the gas fee for the basic BEP-20 token is 0.01 – 0.03 BNB, and the advanced token involving multiple contracts is 0.1 – 0.5 BNB.
Tips To Save On Token Development Costs On Binance Smart Chain
Here are some of the tips that can save you a lot on token development costs without compromising quality:
- Choose open-source BEP20 token contracts instead of building a smart contract from scratch. It would save a lot of money and time.
- Reach out to affordable security audit providers such as Webcom Systems for budget-friendly yet efficient audits.
- Selecting just the necessary features will reduce smart contract complexity and startup expenses.
- Research a little and list tokens on affordable exchange platforms.
Wrapping Up
In conclusion, several factors contribute to the total cost of token development, including the complexity of the smart contract, security audits, and more. Apart from this, other elements, such as token features, supply, project scope, and development team size, also influence the total expense of a token development project.
However, to develop and launch a token on Binance Smart Chain in the most cost-efficient way possible, you would need to partner with professionals. Webcom Systems is a leading token development company that provides comprehensive Binance Smart Chain token development services. Contact us today to get started.
Recommended Read: The Ultimate Guide To Create Your Own Defi Token