Binance cryptocurrency exchange has abandoned the concept of quarterly burning of Binance Coin (BNB) tokens in favor of the Auto-Burn mechanism for their automatic withdrawal from circulation.
Introducing #BNB Auto-Burn: a new protocol for quarterly #BNB burns.
➡️ https://t.co/ME2c8Nv5hZ pic.twitter.com/AYP0C9Jlso
– Binance (@binance) December 22, 2021
As part of the Binance Quarterly Burn Program undertook withdraw 100 million tokens from circulation – half of the total supply. During the last event at the time of writing, the company burned 1,335,888 BNB, for a total of over 31 million BNB (~ $ 16.3 billion at current exchange rates).
The Auto-Burn mechanism is designed to provide more transparency in this process. The algorithm does not take into account the revenues generated by the Binance trading platform, but solely based on the price of BNB and the number of blocks mined during the quarter.
The higher the BNB price, the fewer tokens the mechanism will withdraw from circulation. The program will be terminated when the total number of burned coins reaches the previously announced 100 million.
Recall that in November, Bruno hard fork took place on the Binance Smart Chain network, within which the mechanism of burning a fixed share of gas in each block was activated.
