Leading cryptocurrency exchange Binance has announced the launch of a powerful Binance Coin (BNB) Auto-Burn protocol in place of its present quarterly burn system. The decision comes in response to the multiple requests forwarded by the BNB community users demanding the replacement of the existing quarterly burning mechanism for the native currency. With this new process, Binance is looking forward to achieving enhanced standards of transparency and predictability over its market-leading decentralized trading ecosystem.
The new protocol adopted will facilitate the automatic burning of BNB tokens through a formula involving on-chain data of total blocks generated and the average price of the tokens. Currently, there are two burning processes for BNB tokens. One mechanism involves the real-time burning of a percentage of gas fees on the Binance Smart Chain. The second involves quarterly burn of tokens on the basis of Binance’s Accelerated Burn Program. The BNB Auto-Burn protocol is launched to replace the second burning system.
Ever since the launch of BNB, Binance has planned to burn 100 million BNB which is equivalent to half of the original total supply for the currency. When this total circulating supply will fall below 100 million, the Auto-Burn mechanism will be stopped. In the previous quarterly burn, Binance burned 1,335,888 BNB, amounting to $639,462,868 worth. Also, in the 16th quarterly burning, the firm moved $400 million worth of tokens out of circulation.
The Seychelles-headquartered cryptocurrency exchange Binance takes pride in being the world’s biggest trading platform in terms of the daily trading volume of digital currencies. It has a strong portfolio comprising a wide range of top-rated crypto tokens. The exchange became one of the first entities to become a part of the crypto cluster developed by the UAE government in Dubai. The BNB token is enjoying a safe run in the industry with its price recording a surge by 1,295% since the start of the year. The latest burning mechanism adopted by the exchange is likely to expand its presence in the sector.