cryptonews.com
One of the world's largest cryptocurrency exchanges, Binance, has successfully completed its 25th quarterly BNB token burn, reducing the supply of its native cryptocurrency, Binance Coin (BNB).
In this latest burn, a total of 2,139,182 BNB tokens were removed from circulation, translating to a value of approximately $4.53 million.
In July, Binance announced the 24th quarterly BNB burn, during which approximately 1.99 million BNB tokens, worth around $484 million were removed from circulation.
Binance intends to eliminate more than 100 million BNB, which accounts for half of the total supply, through a series of token burns, with the ultimate goal of retaining only 100 million BNB in circulation.
BNB Remains in Green
This practice, which began in October 2017, involves the elimination of a set number of BNB tokens each quarter to enhance scarcity and, in turn, create potential value appreciation.
Despite the substantial quantity of tokens being burned, the market response this time was relatively subdued, with BNB trading at around $213, representing a 2.74% increase over the past 24 hours.
The BNB burning process is meticulously orchestrated through the Auto-Burn formula, which factors in the coin's price and the number of blocks generated on the Binance Smart Chain.
This provides an independently auditable and objective process, ensuring transparency in the token burning mechanism.
The figures are reported quarterly, offering investors and the crypto community clear insights into the supply reduction.
The burning mechanism operates independently of Binance's centralized exchange.
Moreover, BNB Chain, which operates separately, continues to burn a portion of BNB Chain’s gas fees in real-time using a bespoke mechanism.
This ongoing reduction in supply, coupled with its application in transaction fees, underscores Binance's multifaceted approach to managing and enhancing the value of BNB.