In Brief:
- Binance today announced the implementation of a new ‘BNB Auto-Burn procedure’.
- The BNB Auto-Burn system is going to be objective and verifiable.
Binance today announced the implementation of a new ‘BNB Auto-Burn procedure’. The new procedure is created to further build a healthy blockchain ecosystem together with the BSC & BNB communities.
The BNB Auto-Burn system is going to be objective and verifiable. This new system does not depend on the revenues that are generated on Binance’s centralized exchange through the use of the native token.
BNB Auto-Burn will be automatically adjusted as the burn amount will be based on the price of BNB. This in turn, represents the supply and demand for BNB and also the number of blocks produced during a quarter calculated on the basis of on-chain information.
A part of the gas fees spent on BSC burnt in real time is introduced as BEP95. Once BEP-95, which integrates a real-time burning system into its tokenomic structure, is activated, a fixed proportion of gas fees collected by the validators in the BSC ecosystem will be burned in each block.
Binance revealed that the next phase in the development of its native tokens and BSC has started.
In October, Binance had first proposed a Smart chain Proposal “Binance Evolution Protocol, BEP-95” to implement a real-time fee-burning mechanism.