Binance, the world’s leading cryptocurrency exchange, announced via a blog post on Monday that it has burned over $600 million worth of BNB tokens in the first quarter of the year.
This burn is the first of 2023 for the cryptocurrency exchange and the 22nd since the exchange began operating in 2017. Binance wrote that;
“BNB Chain has completed its 22nd BNB burn and first quarterly burn of 2023. The burn includes the Auto-Burn as well as the Pioneer Burn Program. Here are the facts and figures from the latest burn:
Auto-Burn (Total BNB burned): 2,064,494.32 BNB, Approximate value in USD: $575,458,677.66, Transaction ID (TXID) for BNB burn: View transaction, BNB burned from the Pioneer Burn Program: 7,181.03 BNB, and Real Burn (Auto-Burn - Pioneer Burn): 2,057,313.29 BNB”
The leading cryptocurrency burned 2,064,494.32 BNB tokens (worth around $575 million) in the current quarter. The crypto exchange said it burned 7,181.03 BNB from its Pioneer Burn Program
Binance explained that coin burning is a mechanism used to remove coins from circulation, reducing the total supply permanently. Many cryptocurrency projects perform periodic coin burns to create a deflationary effect.
Binance said its BNB Auto-Burn mechanism automatically adjusts the amount of BNB to be burned based on the BNB price and the number of blocks generated on the BNB Chain during the quarter. This offers greater transparency and predictability to the BNB community. Users who have lost tokens in certain cases can count these towards the burn and then be reimbursed under the BNB Pioneer Program.
The cryptocurrency exchange intends to burn 100 million BNB tokens over the coming years. So far, Binance has burned 21% of that amount.
Binance’s continued expansion globally and more positive Binance reviews ensure that the cryptocurrency exchange further cements its place as the world’s leading digital asset trading platform.