Binance plans to replace the quarterly burn of its native token with a new procedure called BNB Auto-Burn.
The cryptocurrency exchange giant Binance announced the implementation of a new BNB Auto-Burn mechanism.
- The aim is to provide greater transparency and predictability to the BNB community.
- BNB Auto-Burn is also designed to foster the development of a “healthy blockchain ecosystem” together with the Binance Smart Chain (BSC) and Binance Coin (BNB) communities.
- According to the official blog post, the new system, dubbed “BNB Auto-Burn,” will have two characteristics. It will be objective and verifiable. It will not rely on the revenues generated on the Binance’s centralized exchange through the use of the native token.
- Instead, it will be automatically adjusted in that the burn amount will be based on BNB’s price. This, in turn, takes into account the supply and demand for the token in addition to the number of blocks produced during a quarter based on on-chain data.
- With the introduction of the BNB Auto-Burn, Binance revealed that the next phase in the development of its native tokens and BSC has started.
- CryptoPotato had earlier reported about Binance Smart Chain launching its automatic burning mechanism.
- After the activation of BEP-95, which is involved with integrating a real-time burning system into its tokenomic structure, a fixed ratio of gas fees accumulated by the validators in the BSC ecosystem will be burned in each block.
- The main objective is to ramp up Binance’s burn process while simultaneously decentralizing the network.