Leading cryptocurrency exchange, Binance has recently completed the 19th quarterly burn of its native cryptocurrency, the Binance Coin (BNB). The latest burn is the second quarterly BNB Auto-Burn, a new burn mechanism that was introduced in the last quarter of 2021.
The Q2 2022 burn, saw the exchange permanently remove a total of 1,839,786.26 BNB worth over $741 million from circulation.
The latest burn includes an additional 9,403.78 BNB that was burned from the Binance Pioneer Burn Program, an incentive created by the exchange to support users who had lost tokens to smart contracts via mistakes in honest transactions.
The Binance Auto-Burn Mechanism
Binance has remained committed in its resolve to remove or “burn” 100 million BNB tokens, half of the token’s total supply, from circulation to boost deflationary shock.
For the longest time, the quarterly BNB burns had been a reflection of the token’s trading volume and the revenue generated via the exchange’s operations.
However, to become more attuned to the interests of users, Binance implemented the feedback from its community to replace the former burn mechanism with the Auto-Burn mechanism.
The BNB Auto-Burn mechanism automatically adjusts the amount of BNB to be burned based on the token’s price and the number of blocks generated on BNB Chain during the quarter.
This new burn mechanism offers the BNB community greater transparency and predictability and makes the entire process independent of the exchange’s centralized ecosystem.
Binance Continues to Push for Licenses
The cryptocurrency exchange has largely been on the receiving end of scrutiny into crypto operations by global financial regulators.
Binance had run into trouble with several regulatory watchdogs for operating within their jurisdictions without a license. The exchange, however, has been making conscious efforts to become a licensed digital asset services provider in different countries.
The exchange obtained operational licenses in both Dubai and Bahrain earlier in February. Its CEO, Changpeng Zhao, recently revealed plans to invest over $108 million in France, during the Paris Blockchain Week Summit (PBWS).
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