Binance officially announced the implementation of a new Binance Coin (BNB) Auto-burn protocol to replace the current quarterly burn mechanism.
In response to requests from the BNB community, Binance changed its quarterly burn protocol for BNB tokens. According to Binance, this will provide more “transparency and predictability” for its community. With this, BNB is automatically burned based on a formula consisting of on-chain data of the total blocks generated and the average price of BNB.
At the moment there are two burning mechanisms for BNB. One of them is the real-time burning of a percentage of the gas charges on the Binance Smart Chain. The second is quarterly burn based on Binance’s Accelerated Burn Program, which would replace the BNB auto-burn mechanism.
Since the inception of BNB, Binance has committed to burning 100 million BNB, which is half of the original total supply. If the total circulating supply of BNB falls below 100 million, the auto-burn will cease.
In the last quarter’s burn, the company took 1,335,888 BNB out of circulation, which was about $ 639,462,868 at the time. At the beginning of the year the team $ 400 million destroyed worth of BNB tokens in the 16th quarterly burn event.
At the time of writing, the NBB is trading at $ 528, less than 10% from 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% since early 2021.
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Binance was now one of the first to do so Join the crypto hub Founded by the government of the United Arab Emirates in Dubai. The news came a day after the Dubai government announced the start of its crypto hub.
