Binance Executes Quarterly Token Burn, Removing Over $450 Million Worth Of BNB

2023/10/17 15:37

On October 16th, Binance, the world's largest cryptocurrency exchange, carried out its 25th quarterly token burn, resulting in the removal of more than $450 million worth of Binance Coin (BNB). This strategic move is part of an ongoing effort to manage the total supply of BNB through the BNB Auto-Burn system.

The BNB Auto-Burn Mechanism

Central to this process is the BNB Auto-Burn system, a feature designed to autonomously reduce the circulating supply of BNB tokens. The mechanism operates independently of Binance's centralized exchange, ensuring transparency and accountability in the quarterly reports disclosing the figures.

During the recent quarterly burn, over 2.1 million BNB tokens were completely eliminated. An additional 314.69 BNB were burned through the Pioneer Burn Program, an initiative assisting users who have lost access to their BNB holdings. This dual-pronged approach reflects Binance's commitment to both token economics and customer support.

BNB's Historical Commitment

Launched in 2017, BNB committed to eliminating 100 million tokens, constituting half of its total supply, through a systematic burning procedure. Over the years, Binance has consistently executed this commitment, periodically removing billions of dollars' worth of BNB tokens.

The determination of the quantity of BNB to be burned follows a precise Auto-Burn formula. This formula ensures that only 100 million BNB tokens remain in circulation, aligning with the initial commitment made during BNB's launch. The calculated approach aims to maintain equilibrium in the BNB ecosystem through controlled reductions in supply.

Market Response and Price Movement

While the BNB token has shown resilience to these periodic burns, its price trajectory is indicative of broader market trends. Over the past day, BNB recorded a modest 3% gain, reaching a trading value of $213. However, in year-to-date performance, BNB is down by 13%.

Binance

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Binance Executes Quarterly Token Burn, Removing Over $450 Million Worth Of BNB

The BNB Auto-Burn Mechanism

BNB's Historical Commitment

Market Response and Price Movement

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