Skip to main content

BNB

Launched in July 2017, Binance is the biggest cryptocurrency exchange globally based on daily trading volume. Binance aims to bring cryptocurrency exchanges to the forefront of financial activity globally. The idea behind Binance’s name is to show this new paradigm in global finance - Binary Finance, or Binance.

Aside from being the largest cryptocurrency exchange globally, Binance has launched a whole ecosystem of functionalities for its users. The Binance network includes the Binance Chain, Binance Smart Chain, Binance Academy, Trust Wallet and Research projects, which all employ the powers of blockchain technology to bring new-age finance to the world. BNB is an integral part of the successful functioning of many of the Binance sub-projects.

What Is BNB’s Auto Burn?​

Within the crypto industry, a coin burn is a deflationary mechanism that is used to permanently remove coins from circulation. Most cryptocurrency projects, including Binance, periodically burn coins to sustain the value of their digital asset and create a deflationary effect.

In the case of Binance, the crypto exchange began the program in late 2017 and has so far burned over 38 million tokens via its quarterly burn to date. The crypto exchange has in mind to destroy up to 100 million BNB tokens through its quarterly burns, accounting for 50% of its circulating supply.

BNB utilizes two coin-burning mechanisms. The first mechanism consists of burning a portion of the tokens spent on transaction fees on the BNB Chain, and the second is its quarterly BNB burning events.

Previously, the quarterly burn event was based on revenue generated from the Binance centralized exchange. 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 BNB's average dollar-denominated price during the quarter.

As of 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%.

  • Binance Chain
  • Binance Smart Chain

Binance Coin: BNB Any Potential in 2022?! Deep Dive! - YouTube

Where To Find 100x Tokens Before It's TOO LATE!! 🚀 - YouTube

What is BNB? Binance Smart Chain Explained with Animations - YouTube

Binance Coin (BNB): Native Token of the Largest Crypto Exchange - Coin Bureau