- Binance exchange has burned 1.3 million coins (worth about $705 million) in its 17th and final quarterly burn.
- In the interest of the BSC and BNB community, the exchange has introduced auto-burns alongside the already functional BEP-95 daily burns.
Binance has conducted yet another quarterly BNB token burn, in which 1,335,888 coins have been permanently removed from circulation. At the current BNB price of $528, this amount is equal to $704,880,000. This is Binance’s 17th BNB quarterly burn, and also, per a recent announcement, its last quarterly burn.
Binance has today published the latest modifications to its token burning system. Henceforth, the exchange will replace quarterly burns with a new auto-burn system. The total amount of coins to be destroyed in auto-burns is 1.69 million BNB. This is much less than the total amount of tokens Binance has destroyed in all its quarterly burns.
Binance introduces auto-burns in place for quarterly burns
Additionally, the auto-burns will be based on the price of BNB, which is a reflection of its supply and demand. Auto-burns will also rely on the level of activity on BSC as reflected by the number of blocks produced quarterly. Differently, quarterly burns were based on revenue accrued by the exchange.
Binance has provided a formula for calculating these auto-burns. A graph depicting the same shows that the number of tokens burnt reduced with an increase in the price of BNB. After the new burn system is implemented, Binance will share the projected burn amount based on this formula.
The above alterations, Binance notes, come after consultation with the Binance Smart Chain (BSC) and BNB communities. The auto-burn system brings “greater transparency and predictability to the BNB community,” Binance notes. It also signifies the continuous evolution of the BNB token, in line with its “Build N Build” mantra.
Auto-burns to function alongside BEP-95 real-time token burns
Binance will retain its real-time token burning system that was introduced through BEP-95 on Nov. 30. The burning mechanism, which wipes out a portion of the gas fees in BNB, destroys approximately 860 BNB daily.
Read More: Binance implement Bruno upgrade and BEP-95 real-time token burning
The two burn systems will cease to function once the amount of BNB in circulation goes under 100 million. This is contrary to a burning system such as that used by Ethereum’s EIP-1559, where a portion of the gas fees is burned indefinitely. The difference comes since Ethereum coins are mined and infinite in supply. BNB is not mined and has a fixed supply cap of a little over 168 million coins.
BNB was still following the wider market price correction at press time. Trading at $530, the coin has declined 1.3 percent in the last 24 hours and 1.6 percent in the week. Binance’s burn systems might, however, bring greater gains to the coin in the future.
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