Binance, one of the leading cryptocurrency exchanges in the world, recently announced that it had conducted its 22nd BNB token burn. This event marks the first quarterly burn of 2023 and is a significant milestone for the company.
According to a statement released by Binance, a total of 2.05 million BNB tokens were burnt through its auto-burn program. The Pioneer Burn Program accounted for an additional 7,181 BNB tokens. Binance has been regularly burning its BNB tokens since 2017 as part of its commitment to maintaining the token’s value.
Binance stated that it started a unique program called the BNB burn program, which aims to significantly reduce the total supply of BNB tokens in circulation. The program is executed quarterly and is designed to remove half of the 100 million total BNB tokens from circulation.
This program is a way for the exchange to honor its commitment to maintaining the value and scarcity of the BNB token for its holders.
Binance has implemented several burn mechanisms to further enhance the value of its native token, Binance Coin (BNB). One such mechanism is the Pioneer Burn Program, which aims to permanently eliminate any BNB tokens that have been proven to be lost from circulation.
Additionally, Binance has introduced a real-time burn program, which burns a percentage of the gas fees generated on the Binance Chain in real-time. This helps to reduce the overall supply of BNB, adding to its scarcity and increasing its value for holders.
A combination of factors determines the auto-burn process used to decrease the overall supply of Binance Coin (BNB). One of these factors is the current market price of BNB, as the number of burnt coins will vary depending on how valuable the asset is at any given time.
Additionally, the number of blocks that are generated on the Binance Smart Chain (BSC) during a quarter also plays a role in determining the amount of BNB that will be burnt through the auto-burn mechanism.
This is because the auto-burn process is triggered at the end of each quarter, and the number of blocks generated during that period is considered when determining the total amount of BNB to be burnt.
Finally, by decreasing the overall supply, the exchange hopes to increase the demand for the remaining tokens, ultimately increasing their value.
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