Binance has just completed its 19th quarterly BNB burn. In this deflationary operation, the exchange destroyed 1.8 million BNB, or just over $770 million. As always, some of the tokens burned are among the cryptocurrencies lost by BNB Chain users.
Binance burns over 1.8 million BNB
Binance just announced its 19th quarterly burn. In a statement posted on its official blog, the exchange explains that it destroyed “a total of 1,839,786.26 BNB,” which is equivalent to $741,840,738.874. The burned crypto-currencies disappear from the market for good.
True to form, the crypto asset exchange platform destroyed a portion of the outstanding BNB tokens in order to reduce supply. As explained in the white paper, the destruction of the tokens aims to make 100 million of the outstanding BNB disappear, or 50% of the supply.
This deflationary process should theoretically contribute to the increase in the price of the digital currency. At the time of writing, the price of BNB is hovering around $430, far from its all-time high of $690 last May.
NBBs burned in the Pioneer Burn
This second burn of the year relies on a self-combustion mechanism. As Binance reminds us in its release, this auto-burn process automatically calculates the number of tokens deleted based on the price of the BNB and the total number of blocks.
Until late last year, the exchange manually selected which crypto-assets to burn. In the announcement, the company explains that “BNB Auto-Burn has replaced the previous burn mechanism in favor of a more objective process independent of the centralized Binance ecosystem.” Fees from the BNB Chain, the evolution of the Binance Smart Chain, will continue to be burned in real time, however, Binance notes.
The platform also says that 9,403.78 BNB were burned as part of the Pioneer Burn program. This initiative helps Binance Smart Chain users who have made involuntary transfers to recover some of their funds. The lost tokens are simply included in the BNB destined for burn.