What is auto-burn and how does it work?

From a technical perspective, auto-burn uses BNB smart chain’s on-chain information to calculate how much of BNB should be burned. The burn amount is also adjusted based on supply and demand dynamics. Meaning when the price of BNB is low, the burn rate increases.

What is the BNB auto burn mechanism?

The BNB auto burn mechanism is automated to adjust the amount of BNB to be burned based on the price of BNB and the number of blocks generated on Binance Smart Chain (BSC) during the quarter. It is calculated on the basis of on-chain information. There is a formula for this and we’ll get to that shortly. The second mechanism is Real time burn.

What causes a burn?

Burns occur when some or all of the cells in the skin or other tissues are destroyed by heat, electrical discharge, friction, chemicals, or radiation. Burns are acute wounds caused by an isolated, non-recurring insult, and healing ideally progresses rapidly through an orderly series of steps [ 1 ].

How to burn BNB?

There are two methods to burn BNB. The first consists of quarterly BNB burning events. The second was introduced in the BEP-95 and involves burning a portion of the BNB spent as gas fees on the BNB Chain. Previously, the quarterly BNB burns were based on the BNB trading volume on the Binance exchange.