To Reflect DeFi Activity on Binance Smart Chain BNB Tokens Will be Burnt

Snapshot

• From Thursday, BNB tokens will be burnt regularly by Binance instead of once a quarter. 

In a post on Thursday, Crypto exchange Binance has stated that it will change the process of removing Binance coins (BNB) from circulation. This is being done to better reflect their usage in the Binance Smart Chain (BSC) ecosystem. 

BSC is a network of decentralized finance (DeFi), a financial system based completely upon smart contracts. Binance coins allow holders to pay the transaction fee and also allow holders to change or add to the protocols running on the chain. 

It is informed that a new system called Auto-Burn will be initiated and will replace the previous quarterly burning schedule. The move is expected to offer more transparency for the broader BNB community. As per information provided by Binance’s spokesperson, “the announcement of the BNB Auto-Burn is a step towards the growth of the BNB community by providing greater autonomy, predictability, and transparency. 

The burn process in BNB Auto-Burn will be based on the demand and supply dynamics of BNB, using chain information from BSC. 

The BNB Auto-Burn process will be halted when the BNB tokens in circulation drop below 100 million. At present, there are 168 million in circulation.  

Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.

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