Cryptocurrency exchange Binance has begun burning its own tokens using a program that automatically calculates the amount of Binance Coin to be destroyed.
in a new way
was burned 1.6 million tokens for $750 million. The procedure is designed to overcome deflation, raise the value of BNB, increasing its attractiveness as a store of value.
The formula for burning tokens is based on the total number of blocks in Binance Smart Chain.
Binance expects the new automated approach to make the burning process more accurate and more understandable for the BNB community.
“For us, the automated burning system is a step forward in the development of Binance Coin. It implies autonomy, transparency and predictability,” says Binance co-founder and CEO Changpeng Zhao.
Binance plans to destroy 100 million BNB, which is 50% of their total turnover. Since 2017, through the quarterly BNB Burn procedures, the exchange has managed to get rid of 35 million tokens.
This is the 18th burning. The previous one took place in October 2021. So far, the procedures have not brought noticeable results. Today, BNB is trading at about the same price as before the first burn, having fallen in price by 4%.
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