TL; DR Breakdown
- Binance introduces a new auto burn mechanism for its BNB token
- The company will replace the previous quarterly burn
- BNB has been trading down in the market
Binance, via a new update, has announced that it has abolished its quarterly burn protocol and has updated to a new auto burn mechanism. According to the crypto exchange, this move was carried out as a response to the clamors by its community. With that, BNB, the official native token of Binance, will undergo an automatic burn instead of the usual quarterly burn.
Binance replaces its quarterly burn with the new feature
According to a statement by Binance, although the burn will happen automatically, some conditions must be fulfilled for that to happen. The report mentioned that BNB must need to attain a specific aggregate total of blocks for the automatic burn to occur coupled with reaching a specific price tally. Presently, the company has two methods to carry out the burning of its native token. The first burning method is used to burn a specific amount of gas fees generated on the blockchain.
According to recent records, the second burn is the quarterly burn that the automatic burn would replace henceforth. After the launch of the BNB token, Binance announced that it would continue to carry out the burn mechanism until it eventually burns half of the total tokens. A statement has also mentioned that Binance will automatically remove this auto burn feature once they reach the 100 million burnt tokens threshold.
BNB is trading down in the market
Binance generated a bit of frenzy in one of its quarterly burns, which saw the company get rid of more than $600 million worth of the BNB tokens. In the recent quarterly burn, the company cleared BNB worth $400 million out of circulation. Despite the burn, the digital asset is not doing well in the market as it is seeing a loss of 10% in the last 24 hours.
Presently, the token is selling for a little bit above $500. The token stirred the market after it clinched its all-time high figure of $690 that it claimed in May. However, any trader who has held the token since the start of the year would gain 1,295% on their hands. Besides that, Binance struck gold recently when it announced that it had been earmarked as one of the firms to enter the Dubai-based crypto hub. The company announced the move after the government of UAE announced the completion of the hub.