TechFlow News, December 22 – Binance announced the implementation of a new BNB auto-burn mechanism effective immediately, replacing the previous quarterly burn model. The new BNB auto-burn will be objective and verifiable, independent of revenue generated from BNB usage on the Binance CEX. It will automatically adjust, as the burn amount will be based on the price of BNB—reflecting supply and demand dynamics—and the number of blocks produced on-chain during each quarter. The formula is as follows:
B is the amount of BNB to be burned. N is the total number of blocks produced on BSC during the quarter. P is the average USD price of BNB. K is a constant value serving as a price anchor, initially set at 1,000. The BNB auto-burn will cease when the total BNB supply falls below 100 million. This means that the quantity of BNB burned will no longer depend on Binance’s profits, but rather on the price of BNB and the level of activity on BSC.
