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Binance Burns Another $444M Worth of BNB

Chayanika Deka Jul 13, 2022 16:02
Binance periodic burning of BNB is a supposedly deflationary mechanism to reduce the total supply of their coins and drive its appeal. 

Cryptocurrency exchange Binance has announced completing the 20th quarterly burn of its native token, BNB.

  • According to the official blog post, nearly 1.96M BNB (around $444.6 million) was burned in the process, marking its third quarterly burn through the relatively new “auto-burn” feature.
  • The previous BNB burns reflected the tokens’ usage and revenue generated in the Binance centralized exchange.
  • However, it was replaced by BNB Auto-Burn, a move with which the platform expects to make the process more objective and clear to the community.
  • The introduction of BEP-95 in November 2021 set the stage for Binance’s BNB auto-burn mechanism in a bid to help burn BNB tokens faster.
  • The 20th burn comes amidst significant turmoil in the market. BNB’s price also suffered from the rapid declines over the past couple of months.
  • At the beginning of the year, the native token was trading above $500. The price has declined by about 60% since then.
  • The exchange’s CEO, CZ, reflected on the bearish impetus haunting the market and stated,

“During this downturn and all market cycles, our goal is to continue building and investing in the industry and projects to spur adoption and further infrastructure growth. Historically, bear markets have been great periods for focused and long-term-minded builders. This time, we continue to be bullish on our capability to support founders looking to build innovative, long-term solutions for our industry.”

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Chayanika Deka

Chayanika has been working as financial journalist for five years. A graduate in Political Science and Journalism, her interest lies in regulatory implications with a focus on technological evolution in the crypto realm. Contact:Linkedin