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In its First-Ever Auto Burn, Binance Destroys 1.68 Million BNB Tokens -Breaking

by Mike Robinson

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Binance Disintegrates 1.68 Million BNB Tokens during its First-Ever Auto Burn

In December 2021, the world’s largest crypto exchange, Binance, announced the introduction of a new (BNB) Auto-Burn protocol to provide more “transparency and predictability” to its community.

The Auto Burn protocol automatically calculates how much BNB should be burnt based on BNB’s average dollar-denominated price during the quarter and the number of blocks produced on the Binance Smart Chain (BSC) in that period.

The Auto Burn protocol has replaced the regular quarterly BNB burning, but there’s a second mechanism that involves real-time burning of some BNB gas fees.

Use Auto Burn to Destruction

Binance’s first quarterly BNB Auto Burn (or 18th quarterly burn) announced that the total of 1.684 millions BNB, which is approximately $792 million in value, has been taken from circulation. The burn represents an amount equal to 0.84% of Binance’s initial supply.

Quarterly burn 18th BNB Source: Binance Chain Explorer

It was announced that the Pioneer Burn Program had burned 6296.305493 BNB. Binance also assured users that half of the initial 200,000,000 BNB would be burned.

Flipside

  • Binance Coin (BNB) has seen a minimal effect from deflation, which is at 32.40% of the record high of $690.93.

Why you should care

BNB is a stable supply asset. Token Burns could make Binance Coin a deflationary asset.

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