Before you sell your BNB at this price, please think and DYOR or in the future, you will regret selling your BNB at this price Here's why:
BNB Auto-Burn: Reducing Supply, Potentially Boosting Demand.
Binance Coin (BNB) has a unique feature called auto-burn, which helps manage its total supply. This mechanism automatically burns, or permanently removes from circulation, a portion of BNB tokens every quarter. The amount burned is calculated based on two factors:
BNB Price: The higher the price, the more BNB is burned.
Blocks Generated on BSC: The more activity on the Binance Smart Chain (BSC), the more BNB is burned.
This system aims to achieve two things:
Deflationary Pressure: By reducing the total supply of BNB, auto-burn can create a scenario of scarcity. In economics, scarcity can lead to increased demand, potentially driving up the price of BNB.
Transparency and Predictability: Unlike previous methods, the auto-burn formula is clear and publicly available. This allows users to understand how much BNB will be burned each quarter.
Benefits of Auto-Burn:
Potentially increases the value of BNB tokens for holders. Creates a more sustainable BNB ecosystem by managing inflation.
Provides transparency and predictability for investors.
Overall, BNB auto-burn is a strategy designed to make BNB a more valuable and attractive token in the long run.
