Binance Burns $750M worth of BNB in First-Ever Quarterly Auto-Burn

Binance Burns $750M worth of BNB

Binance executed its first BNB token auto-burn at the close of last year, eliminating more than 1.6 million circulating tokens worth $750 million.

The new burn formula calculates the tokens to burn based on the total number of blocks produced and the average dollar price of BNB.

The new process that replaced the previous burn mechanism that was based on the revenue of centralized exchange is expected to bring objectivity to the process.

Binance CEO and co-founder Changpeng Zhao says the auto-burn would enhance autonomy, predictability, and transparency.

The exchange aims to eliminate 100 million tokens, which is half the circulating supply, via quarterly burns. Binance has burned 35 million tokens since 2017.

The 18th automated-token burn announcement has done little to boost BNB price, which dropped more than 4% on Monday to trade at around $474.  

Binance Smart Chain is a protocol for smart contracts on Binance that operates parallel to the Binance Chain.

Source: Coindesk

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