Major cryptocurrency exchange Binance has announced the introduction of a new BNB Auto-Burn feature with immediate effect in the Binance Smart Chain (BSC). The exchange is replacing its previously employed quarterly burn for an automatic protocol to provide more “transparency and predictability” to its community.

The holders of BNB now don’t need to depend on the revenue generated on Binance’s centralized exchange through the native token. Instead, it will be automatically adjusted by basing the burn amount on BNB's price.

<em>“BNB Auto-Burn will be both objective and verifiable, independent of revenues generated on the Binance CEX through the use of BNB, and will be automatically adjusting in that the burn amount will be based on the price of BNB, which, in turn, reflects the supply and demand for BNB, as well as the number of blocks produced during a quarter calculated on the basis of on-chain information,”</em> the announcement blog post <a href="https://www.binance.com/en/support/announcement/611c8f41f49e4cd2a02a7c7d66fdf3c0" target="_blank" rel="nofollow noopener">read</a>.
<h2><strong>Binance's Most Recent Innovation </strong></h2>
Binance’s native <a href="https://www.cryptoknowmics.com/news/binance-offers-a-real-time-token-burning-method-to-increase-the-value-of-bnb/">BNB</a> cryptocurrency fuels transactions on the Binance Smart Chain (BSC), similar to the gas fees paid on Ethereum. In addition, the tokens are also used to participate in the decentralized on-chain governance on BSC.

In its 17<sup>th</sup> quarterly burn, Binance just burned a whopping 1.335 million BNB tokens worth $704,198,842 at the current prices. This means that the coins are no longer in circulation.

With the recent announcement, quarterly burn shall now be replaced with BNB Auto-Burn. However, the automatic protocol will be discontinued once the total circulation of BNB drops below 100 million, which is half of the original total supply.

When shifting to automatic burns from quarterly, the amount of BNB burned will now be determined on the token’s price and the level of activity on Binance Smart Chain and not on Binance's profit.

At the time of writing, BNB is trading currently at $546, up by 3 percent from the past 24 hours. The cryptocurrency is down 22 percent from its all-time high of $690.93 back on May 10, 2021, but is still up by 1,200 percent since the beginning of the year.

Binance Replaces Quarterly Burn Practice by Introducing its BNB Auto-Burn

Binance is replacing its previously employed quarterly-burn for an automatic protocol to provide more “transparency and predictability” to its community.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Binance Replaces Quarterly Burn Practice by Introducing its BNB Auto-Burn

Top Picks