Largest crypto exchange Binance has implemented new coin burning system, know its meaning

Binance has decided to discontinue its quarterly coin burning mechanism in order to create a better, more transparent and predictable token auto-burn mechanism for BNB. Let us tell you, Binance is a global cryptocurrency exchange, which is currently considered to be the largest crypto exchange. According to the announcement, the move will be made on Binance Smart Chain. [BSC] Due to the increasing demand for a good blockchain system from users and the BNB community. So far, Binance had two BNB burning mechanisms, one with real-time burning of one percent of gas fees on BSC and the other, a quarterly burn mechanism based on Binance’s Accelerate-Burn program.

Binance has a blog post “We are listening closely to the Binance Smart Chain (BSC) and the BNB community, and we are proud to announce the immediate implementation of a new BNB auto-burn process.”

Coin burning is a common mechanism through which altcoin creators control the supply of tokens. In most cases (including Binance) this process removes BNB tokens from circulation by sending them to an untraceable wallet. After the implementation of the new mechanism, the burning process will become verifiable.

Like Gas on the Ethereum network, BNB is Binance’s native token and is used for transactions on the Binance smart chain. However, Binance does not control or operate this BSC.

The change in mechanism also means that the amount of BNB burned will no longer depend on Binance’s profit, but on the price of BNB and the level of BSC activity.

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