Binance Implements ‘Auto-Burn’— A New BNB Token Burn Method for BSC
- Binance launches a new BNB token burn procedure called Auto-Burn.
- The exchange will now burn the BNB token continuously instead of its quarterly burn.
- Binance will halt BNB Auto-Burn when BNB’s circulating supply drops below 100 million.
Crypto exchange juggernaut Binance has just announced that it has changed its BNB tokens burn strategy with a new method called Auto-Burn.
According to the announcement, the exchange is doing this to better reflect the full usage of the BNB token on various products that Binance Smart Chain (BSC) provides. The new BNB Auto-Burn approach takes effect from today with a huge blast.
Through this implementation, Binance will now burn BNB tokens continuously instead of its quarter schedule. The company aims to bring an influx of transparency to the Binance community through the new Auto-burn procedure.
Notably, the Auto-Burn will supercharge a competitive BNB token burning and be independent of all the revenues that Binance generates. This will occur by using the BNB token with a sense of growing the Binance ecosystem.
Commenting on the move, Binance spokesperson said,
Our announcement of the BNB Auto-Burn is a natural next step in BNB’s journey and will help the BNB community grow through providing greater autonomy, transparency, and predictability.
Additionally, the Auto-Burn will burn BNB token based on its price and supply-demand dynamics using on-chain information from BSC. Based on this phenomenon, when Binance Coin (BNB) price drops in the market, the amount of BNB burn will increase automatically to make sure the burn rate remains constant.
Furthermore, Binance will stop BNB Auto-Burn when BNB’s total circulation value drops below 100 million. Meanwhile, at press time, BNB has 168 million as its circulating supply.
