Cryptocurrency exchange Binance announced on Monday that it had conducted a planned token burn, burning more than $450 million worth of its native BNB tokens.
Cryptocurrency exchange Binance announced on Monday that it had conducted a planned token burn, burning more than $450 million worth of its native BNB tokens. BNB is currently trading at $212.70. This process involves the permanent removal of 2.14 million BNB tokens from the circulating supply. This planned token burn is part of Binance's ongoing commitment to reduce the total supply of BNB and maintain the token's value over time.
BNB employs an auto-burn system, targeting a total supply of 100 million BNB to “ensure BNB's deflationary model, thereby preserving its value over time.” The auto-burn mechanism adjusts the amount of tokens to be burned based on BNB's price and the number of blocks generated on the BNB Smart Chain (BSC) in each quarter.
Binance's token burn events have become a regular occurrence in the cryptocurrency industry, with the exchange committing to burning a portion of its BNB supply every quarter until 100 million tokens are burned. This strategy has proven successful in the past, as Binance's native token has experienced significant price appreciation since its launch in 2017.
Binance's strong performance and consistent token burn events have contributed to the growing popularity of BNB among investors and traders.
As of now, Binance has burned a total of 50.294 million BNB tokens. The exchange's commitment to regular token burns and the reduction of its token supply has played a crucial role in maintaining the value and stability of BNB in the ever-changing cryptocurrency market.
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