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.
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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, approximately $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.
At the time of writing, 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.
Related: Binance VC arm leads $60M round in cross-chain protocol Multichain
Meanwhile, Binance became one of the first to join the crypto hub established by the United Arab Emirates government in Dubai. The news came a day after the Dubai government announced the launch of its crypto hub.
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