Binance announced an auto burn mechanism in the BSC blockchain for the Quarterly Burn protocol.
Binance is a popular crypto exchange and also it is at the top level in the crypto industry with the highest trading volume in comparison to all exchanges. Binance coin( BNB) is the native token of Binance exchange, which is running on the Binance Smart Chain network.
Right now there are two mechanisms, which are burning BNB coins. The first one is the auto-burning protocol. This protocol burns gas fees of the Binance network automatically.
The second one is the quarterly burning mechanism, this is the manual burning strategy.
On the demand of the Binance coin community, the Binance exchange officially announced that it will introduce the Auto Burn protocol for the Quarterly manual burning.
According to the proposed automatic burn protocol of Binance, it will give transparency and predictability to the community about BNB coins. And this protocol will work on the formula that will be related to the on-chain data of total blocks generated and the average price of BNB.
Binance commitment to burn BNB
Binance promised since the launch to burn half of the supply of BNB coin, which is 100 million. Since the beginning, the Binance team was burning its coin quarterly. But now Binance is moving toward automatic burning protocols.
This newly automatic burning protocol will stop working after the completion of a total of 100 million BNB burns.
In the last quarter, the Binance team burned 1,335,888 BNB (approximately $639,462,868). However last year, they burned around $400 million worth of BNB coins during the 16 quarter burning schedule.
At the time of writing this article, the price of 1 BNB coin is equal to $548, and this price is approximately 9% low than its all-time high of $690.9.
The CEO of Binance exchange, Changpeng Zhao, personally owns only two coins. Two coins are the Binance coin and Bitcoin. He revealed that he doesn’t own any coin because of no one is worth it in the long run.
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