RE: Steemit Crypto Academy Contest / S5W4 - Token Burn || by @xkool24 || 3rd Nov, 2022
This BNB Auto burn mechanism determines the amount of BNB burned using a formula that put into consideration the Price of BNB as of the time of burn activity, Number of blocks generated under the same review period. With this new Auto burn function which also represents a real-time burn function, approximately 860 BNB are burned daily. This is presumed to continue to burn BNB tokens even after the 100million BNB target.
Formular for this Auto Burn Calculation:
B = N x 1000 /(P+K)
B - BNB Amount
N - Number of Blocks produced (Quarterly)
P - BNB Price
K - Constant Value (set at 1000)
This entire process has been seen to improve the BNB token as it continues to evolve the utility token in the chain. The BNB value has continued to grow over the years as it undergoes burn activity.
The strategy used by the BNB blockchain to burn the bnb token is a very good and understandable strategy indeed. Just like that of the steem which has adopted or introduced the burnsteem25 project. The formula used by the bnb network which is B=Nx1000/(P+K) has been explained well by you. Nice entry bro keep it up.
Thank you for coming to my post. The BNB has continued to improvise ways of sustaining and maintaining it's burn activity. The introduction of the Auto-burn is a clear indication of this drive.
More interestingly, the Auto-burn command in the ecosystem would continue to burn BNB token even after the end of the quarterly burn of 100,000,000 worth of BNB token.
This simply means that more than the initial suggested burn of 100,000,000 would be burn given to the Auto-burn command.
Thank you for engaging...
You are welcome