Binance Completes 22nd Token Burn, Removes $620 Million Worth Of BNB From Circulation
In a recent tweet, Binance announced that it has completed its 22nd BNB burn and first quarterly burn of 2023.
When BNB was introduced in 2017, a promise was made to burn 100 million of the coin’s entire quantity, or half of it, and eventually leave only 100 million in circulation. Each quarter, this commitment is automatically carried out and the Auto-Burn formula is used to determine the amount.
According to a statement from Binance, 2.064 million BNB, or around $620 million at today’s values, have been taken out of circulation. In terms of BNB tokens, the 22nd burn broke the previous record set by the 14th, which occurred two years ago.
BNB Auto-Burn Formula
The Auto-Burn formula which is used by BNB provides an independently auditable, objective process. The figures are reported quarterly, and the mechanism is separate from the centralized Binance exchange. A fraction of BNB Chain’s gas fees are still being burned in real-time by a bespoke mechanism.
Based on the price of BNB and the quantity of blocks created on the BNB Smart Chain (BSC) during the quarter, the auto-burn mechanism modifies the amount of BNB to be burned.
The native coin of the BNB Beacon Chain and BNB Smart Chain, BNB fuels the BNB Chain ecosystem. Binance, a cryptocurrency exchange, released it following an initial coin offering in 2017.
The current price of BNB is $ 301.98 per token with a current market cap of $ 47.68B USD. BNB has broken the $300 resistance this weekend to reach $314 last Saturday and shows an upward movement.