Binance replaces quarterly burn with BNB (Binance Coin) Auto-Burn that aims to provide its community with “greater transparency and predictability.”
With Auto-Burn, the crypto exchange platform also seeks to establish a “healthy blockchain ecosystem” with the BNB and BSC (Binance Smart Chain) communities.
The native token BNB powers transactions on the decentralized BSC, which is run by a community of developers, validators, delegators, and users (not by Binance).
As stated in the Binance blog post, BNB Auto-Burn will be objective and verifiable, independent of revenues generated on the Binance central exchange through the use of BNB.
Alternatively to the previous protocol for the quarterly BNB burn, BNB Auto-Burn “will be automatically adjusting in that the burn amount will be based on the price of BNB. This will show “the supply and demand for BNB, as well as the number of blocks produced during a quarter calculated on the basis of on-chain information.”
At this moment, the price of BNB is $528, significantly lower than a month ago (a hit of $666 at the beginning of November), but relatively high if looking at the yearly Coin Market Cap.
On The Flipside
- Binance seeks to keep evolving in the blockchain world. The company recently signed an agreement to take part in World’s First Virtual Asset Ecosystem with Dubai World Trade Centre Authority.
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