Binance, one of the globe’s leading cryptocurrency exchanges, has finalized its 25th quarterly BNB token burn, diminishing the available quantity of its proprietary cryptocurrency, Binance Coin (BNB).
In the most recent burn event, they eliminated 2,139,182 BNB tokens from the market, amounting to an estimated value of about $4.53 million.
Previously, in July, Binance executed the 24th quarterly BNB burn, where roughly 1.99 million BNB tokens, valued at close to $484 million, were taken out of circulation.
Binance’s long-term strategy is to burn over 100 million BNB, equating to half of its total supply. Their endgame is to maintain only 100 million BNB in active circulation.
BNB Remains in Green
Initiated in October 2017, this routine involves periodically removing a predetermined number of BNB tokens every quarter. The primary aim is to boost scarcity, which can subsequently drive potential value appreciation for the token.
Even though a significant number of tokens were burned, the market’s reaction was somewhat muted this time around. BNB was traded at approximately $213, marking a 2.74% uptick over the prior 24 hours.
The process of burning BNB is systematically carried out using the Auto-Burn formula. This method takes into account both the coin’s current price and the number of blocks produced on the Binance Smart Chain.
Such a procedure ensures a transparent and verifiable mechanism for the token burn, maintaining utmost clarity for all stakeholders.
Every quarter, data is disclosed, granting investors and the wider crypto community a transparent view into the diminishing supply.
The token burning procedure runs autonomously, distinct from the operations of Binance’s central exchange.
Additionally, the BNB Chain, which functions independently, consistently burns a fraction of its gas fees in real-time through a specialized process.
The continuous reduction in token supply, along with its utilization in transaction fees, highlights Binance’s holistic strategy in nurturing and boosting the value of BNB.