Binance Abandons Manual BNB Burning in Favour of New Auto-Burn Algorithm

The cryptocurrency exchange Binance has abandoned the concept of quarterly burning of Binance Coin (BNB) tokens in favour of an automatic burn mechanism, Auto-Burn.

Introducing #BNB Auto-Burn: a new protocol for quarterly #BNB burns.

➡️ https://t.co/ME2c8Nv5hZ pic.twitter.com/AYP0C9Jlso

— Binance (@binance) December 22, 2021

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Under the quarterly burn programme, Binance pledged to burn 100 million tokens — half of the total supply. As of the most recent quarter at the time of writing the event, the company burned 1,335,888 BNB, and in total more than 31 million BNB (~$16.3 billion at the current rate).

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The Auto-Burn mechanism is designed to provide greater transparency to this process. The algorithm does not take into account the revenues generated by the Binance exchange; it is based solely on the price of BNB and the number of blocks mined during the quarter.

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The higher the price of BNB, the fewer tokens the mechanism will burn. The programme will be wound down once the total number of burnt coins reaches the previously stated 100 million.

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In November, Bruno hard fork took place on the Binance Smart Chain, under which a mechanism for burning a fixed share of gas in each block was activated.

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