In response to the requests of the BNB community, Binance changed its quarterly burning protocol for BNB tokens
Binance officially announced the implementation of a new Binance Coin (BNB) Auto-Burn protocol to replace its current quarterly burn mechanism.
In response to the requests of the BNB community, Binance changed its quarterly burning protocol for BNB tokens. According to Binance, this will provide more ‘transparency and predictability’ to its community. With this, BNB will be burned automatically based on a formula consisting of on-chain data of total blocks generated and the average price of BNB.
At the moment, there are two burning mechanisms for BNB. One is the real-time burning of a percentage of gas fees on the Binance Smart Chain. The second is the quarterly burn based on Binance’s Accelerated Burn Program, which the BNB Auto-Burn mechanism would replace.
Since the launch of BNB, Binance has committed to burning 100 million BNB, which is half of the original total supply. When the total circulating supply of BNB goes below 100 million, the Auto-Burn will be discontinued.
In the last quarterly burn, the company took 1,335,888 BNB, nearly $639,462,868 at the time, out of circulation. Earlier this year, the team destroyed $400 million worth of BNB tokens in the 16th quarterly burn event.
BNB is trading down less than 10% on the month at $528. It’s down 23.65% from its all-time high of $690.93 back on May 10, 2021, but is still up by 1,295% since the start of 2021.
Meanwhile, Binance became one of the first to join the crypto hub established by the United Arab Emirates (UAE) government in Dubai. The news came a day after the Dubai government announced the launch of its crypto hub at the Dubai World Trade Center (DWTC).
The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.