- The Binance exchange has burned 1.3 million coins (worth about $ 705 million) in its 17th and final quarterly burn.
- In the public interest BSC and BNB, the exchange has introduced self-combustion in addition to the daily BEP-95 burns already in operation.
Binance conducted another quarterly BNB signal stream, in which 1,335,888 coins were permanently withdrawn from circulation. At BNB’s current price of $ 528, this amounts to $ 704,880,000. This is Binance’s 17th BNB quarterly stream, and also, according to a recent announcement, its last quarterly burn.
Binance released the latest modifications to its signal burning system today. From now on, the bag will replace the quarterly burns with a new self-burning system. The total amount of coins to be destroyed in the burnt-cars is 1.69 million BNB. This is far less than the total number of tokens destroyed by Binance in all its quarterly burns.
Binance introduces automatic burns instead of quarterly burns
Also, the self-burns will be based on BNB price, which reflects its supply and demand. Self-burns will also be based on the level of activity at BSC, as indicated by the number of blocks produced on a quarterly basis. In a different way, the quarterly burns were based on the revenue accumulated by the exchange.
Binance has provided a formula for calculating these self-burns. A graph showing the same shows that the number of tokens burned decreased with an increase in the price of BNB. After implementing the new burnout system, Binance will divide the projected burn amount based on this formula.
The above changes, Binance notes, come after consultation with the Binance Smart Chain (BSC) and BNB communities. The auto-burning system brings «greater transparency and predictability to the BNB community,» Binance notes. It also shows the ongoing evolution of the BNB token, in line with its ‘Build N Build’ mantra.
Auto-burns will work alongside BEP-95 real-time signal burns
Binance will retain its real-time signal burning system introduced through BEP-95 on November 30th. The burning mechanism, which removes some of the gas charges in BNB, destroys about 860 BNB per day.
Both systems will cease to operate once the volume of BNB in circulation falls below 100 million. This is in contrast to a combustion system similar to the one used by EIP-1559 Ethereum, in which some of the gas quotas are burned indefinitely. The difference is given because Ethereum coins are cut and their supply is unlimited. BNB is not charged and has a fixed supply cap of just over 168 million coins.
At press time, BNB was tracking an overall market price correction. Trading at $ 530, the base is down 1.3% in the last 24 hours and 1.6% on the week. However, Binance burning systems could bring higher profits to the base in the future.