Crypto exchange Binance has announced that it 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.
As part of the quarterly burn program, Binance has pledged to phase out 100 million tokens – half of the total supply of its native token. During the last event, the platform burned 1,335,888 BNB, and in total – more than 31 million BNB (about $16.3 billion at the current exchange rate).
The Auto-Burn mechanism has been specially designed to provide more transparency in this process. The algorithm does not take into account the revenues generated by the Binance trading platform, but solely based on the price of BNB and the number of blocks that have been mined during the quarter.
The higher the BNB price, the fewer tokens the mechanism will remove from circulation. The program will be terminated when the total number of burned coins reaches the previously announced 100 million.