Crypto

Binance (BNB) Auto-Burn to Replace Quarterly Burn Protocol

Binance (BNB)

BNB Auto-Burn is a new feature introduced by Binance to replace the quarterly burn protocol.

BNB tokens will now be burned automatically based on a formula that takes into account the number of blocks generated as well as the price of Binance.

Binance claims that this will give its community more “transparency and predictability.” BNB will be burned automatically as a result of this, using a calculation based on on-chain statistics of all the blocks generated and the average Binance price.

BNB had two different burning methods at the time. One is the Binance Smart Chain’s real-time burning of a percentage of gas costs. The second is the quarterly burn, which would be replaced with the Binance Auto-Burn mechanism, and is based on Binance’s Accelerated Burn Program.

Binance has pledged to burn 100 million BNB since the debut of the cryptocurrency, which is half of the total supply. The Auto-Burn will be phased out whenever the total circulating supply of BNB falls below 100 million.

The business withdrew 1,335,888 Binance out of circulation in the most recent quarterly burn, which was worth $639,462,868 at the time. The team burned $400 million worth of BNB tokens in the 16th quarterly burn event earlier this year.

BNB is currently trading at $528, down less than ten percent for the month. It’s down 23.65% from its all-time high of $690.93 on May 10, 2021, but it’s still up 1,295 percent from the beginning of the year.

Meanwhile, Binance became one of the first cryptocurrency exchanges to join the United Arab Emirates government’s crypto hub in Dubai. The announcement comes a day after the Dubai government unveiled its crypto center.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.