Crypto exchange Binance, today announced the completion of its 25th quarterly burn of its native Binance Coin (BNB). The company said it incinerated 2.13 million BNB tokens in this burn, valued $450 million.
This recent burn progresses Binance’s aim to reduce the supply of its BNB token. Historically, previous burns have seen varying amounts of BNB destroyed, with some quarters burning nearly 2.22 million BNB, whereas others as low as 808,888 BNB.
The burns have ranged from consuming 0.41% to as high as 1.74% of the total supply in a single quarter. The consistent execution of these burns underscores Binance token’s deflationary model, which aims to bolster the value and scarcity of BNB over time.
#Binance completes the 25th Quarterly #BNB Burn! 2.14m #BNB has been burned pic.twitter.com/3KtkE1y6f5
— Binance (@binance) October 16, 2023
The 25th quarterly burn followed the BNB Auto-Burn process. Notably, within this burn, the procedure encompassed an additional 314.69 BNB tokens, eradicated through the Pioneer Burn Program. The details of this transaction, for the more technically inclined, can be traced through the BNB blockchain explorer.
Binance’s BNB burn is an integral part of its protocol. However, it’s essential to note that while token burns can create scarcity, other market factors like overall crypto market sentiment, regulatory news, or macroeconomic factors can also significantly influence BNB’s price.
Furthermore, the integration of the BNB Auto-Burn procedure showcases Binance’s innovative approach to automate and streamline these burns, ensuring transparency and adherence to its commitment. It’s a move that other projects might monitor and perhaps implement in their own ecosystems.
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