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Binance introduces BNB Auto-Burn


Binance cryptocurrency exchange has abandoned the concept of quarterly burning of Binance Coin (BNB) tokens in favor of the Auto-Burn mechanism for their automatic withdrawal from circulation.

Thus, as part of the quarterly burning program, Binance has committed to withdrawing 100 million tokens from circulation (half of the total supply). During the last event at the time of writing, the company burned 1,335,888 BNB. Also, in total more than 31 million BNB (~$16.3 billion at the current exchange rate).

The Auto-Burn mechanism aims to provide greater transparency of this process. Moreover, the algorithm does not take into account the revenue generated by the Binance trading platform. But is based solely on the price of BNB and the number of blocks mined during the quarter.

The total number of burned coins reaches 100 million

The higher the BNB price, the fewer tokens the mechanism will withdraw from circulation. The program will be curtailed when the total number of burned coins reaches the previously announced 100 million.

In November, the Binance Smart Chain hosted a Bruno hard fork. In which the mechanism for burning a fixed proportion of gas in each block activated.

The Fund contains four categories:

  1. talent development program ($100 million)
  2. liquidity incentive program ($100 million)
  3. developer program ($300 million)
  4. investment and incubation program ($500 million)

BSC’s DeFi protocols to generate significant results

On April 21, BSC network recorded a record for the number of transactions per day – 9.13 million. This was almost six times higher than the corresponding indicator of the Ethereum blockchain at that time.

At the same time, the network of the second-largest cryptocurrency also has a daily record for the number of transactions. Users have made 1.56 million transfers.

Recall that earlier in May, decentralized finance (DeFi) adoption on the BSC showed increased inactivity. Definitely, BSC’s DeFi protocols are well-positioned to generate significant results thanks to low fees and high yield opportunities.

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