Cryptocurrency Exchange Binance Burns $547M Worth Of BNB Tokens

Twitter icon  •  Published vor 1 Jahr  •  Hassan Maishera

Leading cryptocurrency exchange Binance announced that it had burned over $500 million worth of BNB tokens in its quarterly burn event.

Binance, the world’s leading cryptocurrency exchange, announced its quarterly BNB token burn on Thursday, October 13th. In its blog post, the cryptocurrency exchange revealed that it burned over $500 million worth of BNB tokens, one of its largest token burn events to date.

Binance stated that;

“As per the BNB Auto-Burn procedure, the 21st quarterly BNB token burn of 2,065,152.42 BNB has been completed. The latest quarterly burn includes 4,833.25 BNB that was effectively burned via the Pioneer Burn Program.”

The leading cryptocurrency burned 2,065,152.42 BNB tokens (worth around $547 million) in the current quarter. Binance covers these losses and returns the tokens to users, depending on the specific conditions. The BNB tokens are then deducted from the total quarterly burn by the cryptocurrency exchange.

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 latest quarterly token burn is the second-largest in Binance’s history. In 2021, Binance burned $600 million worth of BNB tokens in a single quarter, marking the largest BNB token burn event.

Binance previously committed to burning 20% of its profits for each quarter. By burning over $500 million, the cryptocurrency exchange could have profited by $2.7 billion during the third quarter of the year.

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.

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.