Binance Replaces Quarterly BNB Burn with New Protocol

Binance Replaces Quarterly BNB Burn

Binance exchange has launched BNB Auto-Burn to replace the current quarterly burn for enhanced transparency and predictability.

The new protocol does not vary based on the revenue generated on Binance CEX, and the burn amount is subject to the BNB price.

The formula would be B= N*1000/P+K, where B is the number of BNB to burn, and N is the blocks produced in a calendar quarter. P is the price of BNB on average, and the K is constant set as a base price.

BNB Auto-Burn will be halted once the total circulation falls to less than 100 million.

BNB currently has two burn models, where a part of the transaction fees used on BSC is burnt instantly based on BEP95 standard.

The protocol also burns BNB tokens quarterly as per the accelerated BNB burn mechanism. The process is currently at 17th burn, the last being last quarter, where 1,335,888 BNB was eliminated from circulation.

Binance Smart Chain has been burning about 860 BNB each day since the BSC Bruno upgrade, completed on November 30.

Source: Binance

Leave a Reply

Your email address will not be published.

Related Posts