Binance Burned $484 Million in BNB Tokens

Binance, the largest cryptocurrency exchange, has completed its 24th BNB quarterly burn. General Manager of Changpeng Zhao Marketplace announced about this to the readers of his twitter.

The quarterly #BNB burn is done, according to the public algorithm.

I was told there will be some more on-chain (large) transactions shortly, to further distribute/spread the coins to more addresses. Nothing to be alarmed about.

— CZ Binance (@cz_binance) July 19, 2023

Burning tokens is a procedure for destroying them in order to reduce the emission. This method is used to fight inflation and increase the value of the cryptocurrency. Since 2017, Binance has been aiming to withdraw 100 million tokens, or half of the supply, from circulation. All token burning operations are recorded in the blockchain as a transaction. Anyone interested can verify that the coins have been destroyed.

Thus, according to the results of the second quarter of 2023, 1.99 million coins worth over $484 million were withdrawn from circulation at the time of burning. The transaction fee was traditionally only 0.002 BNB. Today’s burning can also be checked in the blockchain.

In 2021, Binance announced that it will replace the outdated burn protocol with the Auto-Burn procedure. Binance explained that Auto-Burn will provide more “transparency and predictability” for the community. The Auto-Burn algorithm does not take into account the revenue generated by the Binance trading platform, but is based only on the BNB price and the number of blocks mined during the quarter. Thus, the Auto-Burn protocol will work until the total supply of BNB falls below 100 million.

According to the results of the first quarter of 2023, BNB in ​​the amount of $676 million was withdrawn from circulation.

▼
The most interesting and important news on our channel in Telegram