April 19, 2022 : Time to burn BNB. The 19th BNB Burn has been completed.
Binance destroys 1,830,382 BNB in an auto-burn, worth some $772,363,806. This is slightly more than the 18th burn’s $729m worth of BNB destroyed.
Why burn $772 million dollars?— CZ 🔶 Binance (@cz_binance) April 19, 2022
What is BNB Auto Burn?
Binance is a cryptocurrency exchange platform that has the BNB, the Binance coin as its own token. Developed in 2017, it came at a pivotal time for crypto. The Binance token is in third place among the largest cryptocurrencies with a market capitalization of over $90 billion., just behind Ethereum and Bitcoin.
One of the main assets of Binance was especially the BNB, or Binance Coin. Based on the BSC network, also created by the exchange in order to host its native token. Blockchain that will later become one of the best alternatives thanks to its lower transaction costs than those of the Ethereum network.
It is useful to recall that burn, or token burning, is a principle that consists of removing tokens as transactions take place within a blockchain ecosystem, or manually. To do this, issuers send a certain number of tokens to a dead wallet that no one has access to in order to permanently condemn them. The burn allows, in general, a constant increase in the price of the token.
For the case of Binance, the exchange uses a protocol called “Auto-Burn” to automatically and continuously destroy its BNB tokens.
The BNB Auto-Burn system is programmed to stop as soon as the number of outstanding BNBs falls below 100,000 tokens.
BNB Auto-Burn : To provide greater transparency and predictability
In December 2021, Binance announced on its blog that the quarterly burn will be replaced with BNB Auto-Burn to provide greater transparency and predictability.
The Binance BNB burn mechanism changed drastically for the 18th burn. The main difference is that it no longer reflects Binance’s profits, but is based on BNB’s on-chain activity.