Binance Announces BNB Auto-Burn Protocol

Written By Guest User

  • Binance, the world’s largest cryptocurrency exchange, has announced their plans for a new burn protocol for their native Binance Coin ($BNB).

  • BNB previously featured a quarterly burn protocol which burned/destroyed a certain amount of coins in circulation as a means to prevent currency inflation and to raise the value of the remaining coin supply.

  • The quarterly burn will be replaced with “BNB Auto-Burn”, which Binance claims will “provide greater transparency and predictability to the BNB Community.” The auto-burn will be based on a formula that will automatically adjust the amount of tokens burned based on the current price of BNB which Binance states is a reflection of the supply and demand of the token.

B is the amount of BNB to burn. N is the total number of blocks produced on BSC during the calendar quarter*. P is an average price of BNB against the US dollar**. K is a constant value as a price anchor, initially set at 1,000***. BNB Auto-Burn will be halted when the total circulation of BNB drops below 100 million.

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