Binance introduces a new token burning algorithm

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Once the changes are accepted, the BNB tokens will be withdrawn from circulation automatically

Binance introduces a new token burning algorithm

24.12.2021 - 08:00

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What’s new? The Binance cryptocurrency exchange has shared details of a new mechanism for burning the BNB native tokens. Instead of manual quarterly burning, an automatic assets withdrawal system from circulation will be introduced.

Introducing #BNB Auto-Burn: a new protocol for quarterly #BNB burns.➡️ https://t.co/ME2c8Nv5hZ pic.twitter.com/AYP0C9Jlso— Binance (@binance) December 22, 2021

What is known about the new algorithm? The system, called Auto-Burn, is designed to increase the transparency of the token burning operations. The number of BNBs to be withdrawn from circulation will be calculated based on the asset price and the number of blocks mined. The burn will not take into account the exchange's revenues, as was previously implemented.

Once the planned 100 million tokens are burned, the automatic withdrawal mechanism will complete its work. So far, the exchange has already burned about 31 million BNB.

Author:

Editorial GetBlock Magazine

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