The largest cryptocurrency exchange by far is Binance. Despite some regulatory hiccups in the past, the cryptocurrency exchange platform has been trending in the news following its development. This is the most important trend. In December 2021, Binance officially announced the implementation of the new Binance Coin Auto-Burn protocol to replace its current quarterly recording mechanism. This is intended to bring more “transparency and predictability” to its community.
Plan and deliver
#Binance Completed on the 18th of every quarter #BNB burn.
🔥🔥 $795 million USD burned! 🔥🔥https://t.co/BsLqhtsovc
– Binance (@binance) January 17, 2022
Cryptocurrency exchange Binance launched its first Binance Token (BNB) auto-record program last quarter. Follow the Automatic recording procedure, it remove over 1.6 million BNB tokens worth $750 million from circulation.
The latest quarterly burn includes an additional 6,296,305493 BNB. This worked burn through the Pioneer Recording Program, tweets are added.
Go another way
This is an important update. Up until last month, Binance had phased out the BNB token quarterly based on the revenue it generated over a period of time. However, for now, the exchange has implemented a new process, called BNB Auto-Burn.
The BNB . auto-recording formula calculated the number of tokens removed from circulation at the price of BNB. This reflects supply and demand, as well as the number of blocks produced for that quarter. The BNB automatic recording system considers the following formula:
Source: Binance
Here, B is the amount of BNB to burn. N is the total number of blocks produced on the Binance Smart Chain during the calendar quarter. P is the average price of BNB against the US dollar. K is a constant value as the anchor point, initially set at 1000.
Changpeng Zhao (CZ), co-founder and CEO of Binance said:
“The implementation of BNB Auto-Burn is a natural next step in BNB’s journey. It will help the BNB community grow by providing greater autonomy, transparency, and predictability. ”
Binance started burning BNB in 2017 after launching the token. At the time, it pledged a total of 100 million BNB, which is 50% of its total supply. Fast forward, the chart is as follows:
Source: Blockcrypto
Overall, the exchange has destroyed nearly 35 million tokens through quarterly burns to date.