beincrypto.com
Popular crypto exchange OKX burned OKB as it successfully completed the twentieth round of its ‘Buy-Back & Burn program’ This time around, it burned $258 million worth of its native token.
In this round, OKX noted approximately 5.5 million OKB tokens were repurchased and burned from the market.
OKX Burn to Reduce Original Supply
The burn took place between March and May 2023. It aims to manage the token supply and enhance its users‘ value proposition through the process.
OKB initiated the first Buy-Back & Burn program on May 4, 2019. Since then, OKX burning OKB tokens has reduced the original supply of the asset. The original supply of OKX native is pegged at 300 million and reduces every three months based on seasonal market conditions and operational performance.
The repurchased tokens are then sent to a burning address that is inaccessible to anyone, the exchange notes.
If you want to learn more about the process of token burning, read here
What Is a Coin Burn?
Since the program’s inception, OKX has burned close to 64 million OKB tokens. This substantial burning effort has reduced the circulating supply of OKB to around 235.9 million OKB, strengthening scarcity and potentially driving value for token holders.
Reaching New Milestones
OKX has previously announced its commitment to slashing the OKB supply based on market conditions but refrained from disclosing the specific rules governing the process. However, the Dune dashboard has a public record of burned tokens that pegs a burn rate of 21.35% and its corresponding value.
In September 2019, OKX burned a record 6 million OKB tokens, taking the cumulative figure to almost 8 million. The cumulative figure reached 14 million at the start of January 2020.
OKX’s most recent burn round marks a significant milestone for the native token. In response, OKB has gained around 1.4% on the daily charts at the time of writing. CoinGecko data shows that OKB also remains in the green on the hourly chart after losing almost 2% of its value in each of the last two weeks.