Binance, one of the world’s leading cryptocurrency exchanges, has triumphantly completed its 25th quarterly BNB token burn, diminishing the supply of its native cryptocurrency, Binance Coin (BNB).
During this latest burn, an impressive total of 2,139,182 BNB tokens were permanently removed from circulation, equating to a staggering value of approximately $453 million.
Earlier in the year, in July to be precise, Binance had announced its 24th quarterly BNB burn, during which nearly 1.99 million BNB tokens, with an estimated worth of around $484 million, were taken out of circulation.
Binance’s overarching objective is to eliminate over 100 million BNB, which constitutes half of the total supply, through a series of meticulously executed token burns. The ultimate aim is to retain only 100 million BNB tokens in circulation.
BNB Holds Its Ground
This strategy, initiated in October 2017, involves the periodic elimination of a predetermined number of BNB tokens each quarter, ultimately fostering scarcity and potential value appreciation.
Despite the significant number of tokens being permanently removed, market reaction to this latest development has been relatively subdued, with BNB maintaining a trading price of around $213. This represents a modest 2.74% increase in value over the past 24 hours.
The BNB burning process is orchestrated with precision through the Auto-Burn formula, which takes into account the coin’s current price and the number of blocks generated on the Binance Smart Chain.
This formula creates an independently auditable and objective process, thereby ensuring transparency in the token burning mechanism.
These figures are disclosed on a quarterly basis, providing both investors and the wider crypto community with clear insights into the ongoing supply reduction.
Importantly, the burning mechanism operates independently of Binance’s centralized exchange.
Furthermore, BNB Chain, a separate entity, continues to reduce the supply of BNB tokens in real-time by utilizing a tailored mechanism funded through a portion of BNB Chain’s gas fees.
This continued reduction in supply, combined with its application in transaction fees, exemplifies Binance’s multifaceted approach to managing and enhancing the value of BNB.
