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Binance “Burns” 1.3 Million BNB – What Does This Mean?
Almost $400 million worth of tokens have been burned in Binance’s 16th quarterly BNB token burn, as per the whitepaper.
Just under 1.3 million BNB coins have now been removed from circulation since the burn took place on July 19.
What Is Token Burning and What Are the Implications?
Binance’s quarterly burn is a deflationary mechanism. Every three months it destroys coins to ensure the asset remains scarce and help the price of BNB go up. Currently, the value of burned coins is equal to 20 percent of Binance’s profit during the previous quarter.
The burn included 5,163 BNB as part of the Binance “Pioneer Burn Program”, where the exchange aims to compensate users who mistakenly lost their BNB by accidentally sending them to smart contracts from which the tokens cannot be recovered.
BNB is the fourth-largest digital asset, with a market capitalisation of roughly US$47.5 billion.
Binance’s 15th BNB quarterly burn, worth over $500 million, was in April.
Author
Caitlin Carey
Caitlin is a crypto evangelist with a deep curiosity and passion for learning and writing about everything to do with cryptocurrency. She has a background as a performing artist and songwriter and is a digital media enthusiast, with a bachelor degree in Multimedia.
