Inside the crypto business, coin consumption is a deflationary instrument used to eliminate coins from dissemination forever. Most cryptocurrency projects, including Binance, periodically burn coins to maintain the value of their digital assets and create a deflationary effect.

In the case of Binance, the crypto exchange launched the program in late 2017 and has so far burned over 38 million tokens through quarterly burns. The crypto exchange has taken care of destroying 100 million BNB tokens through its quarterly burn, which accounts for 50% of its circulating supply.

BNB uses two coin-burning mechanisms. The first mechanism is to burn a portion of the tokens spent on the BNB chain for transaction fees, and the second is its quarterly BNB burn event.

Already, the quarterly consumption occasion depended on income produced from the Binance-incorporated trade. But under the new BNB auto-burn program, the number of tokens to be burned is calculated using a formula based on the total number of blocks produced on the Binance Smart Chain and the average dollar value of BNB during the quarter.

By July 2022, Binance had completed 20 BNB coin burn events. In total, 38,683,447.66 BNB tokens have been destroyed, reducing its initial 200M supply by 19.34%.

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