BNB tokens will now be burned automatically depending on a formula that involves the blocks created and the price of BNB.
Binance has declared that it will replace its existing quarterly burn mechanism with a new Binance Coin (BNB) Auto-Burn protocol.
Binance updated its quarterly burning mechanism for BNB tokens in response to community concerns. Binance says that this will provide its community with increased "transparency and predictability." BNB will be burnt automatically as a result of a formula based on on-chain data of total blocks generated and the average price of BNB.
Currently, BNB is burned using two different techniques. One is the Binance Smart Chain's real-time burning of a percentage of gas fees. The other is a quarterly burn based on Binance's Accelerated Burn Program, which will be replaced by the BNB Auto-Burn mechanism.
Binance has planned to burn 100 million BNB since the launch of the BNB, which is 50% of the total supply.
The Auto-Burn will be phased out once the total circulating supply of BNB drops below 100 million.
The company pulled 1,335,888 BNB out of circulation in the recent quarterly burn, which was worth $639,462,868 at the time. The team burned $400 million worth of BNB tokens in the 16th quarterly burn event previously this year.
BNB is currently trading at $528, down less than 10 % for the month. It's down 23.65% from its all-time high of $690.93 on May 10, 2021, but it's still up 1,295 % from the beginning of the year.
However, Binance became one of the first crypto exchanges to join the United Arab Emirates government's crypto hub in Dubai. The announcement comes a day after the Dubai government unveiled its crypto hub.