Binance burns 2,06 million BNB worth $575 million

As part of the Pioneer Burn Program, 7181,03 coins were withdrawn from circulation

17.01.2023 - 09:15

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What’s new? BNB Chain, developed by crypto exchange Binance, has conducted its 22nd quarterly native token burn, which saw 2 064 494,32 coins worth $575,4 million withdrawn from circulation. That number includes 7181,03 BNB burned as part of the Pioneer Burn Program. As of January 17, 09:05 UTC, the exchange token is trading at $301,6, having gained 1,24% in 24 hours.

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Cryptocurrency burning is the process of removing a certain number of tokens from circulation, after which they become permanently inaccessible. Often burning is carried out in order to increase the rate of an asset or prevent it from inflation. Burning can be done by sending tokens to a wallet without a private key, by conducting a hard fork, using special software, or using algorithms that destroy some of the funds during transactions.

What is known about the burning procedure? The number of tokens to be removed is automatically calculated using the Auto-Burn formula adopted in Q4 2021. In addition, a portion of the tokens charged as transaction fees is burned in real-time. A total of 100 million tokens, or half of the total supply, will be taken out of circulation under the program, after which the quarterly burn will cease. In October 2022, Binance burned $574,8 million worth of BNB as part of its 21st quarterly burn.

The asset currently ranks 4th in the cryptocurrency ranking with a capitalization of $49,29 billion.

What is known about BNB Chain? It is the world’s largest blockchain by the number of transactions and users, created by Binance in 2022. More than 1300 decentralized applications (dApps) are built on the platform. In June, BNB Chain announced an increase in decentralization and the capacity of the blockchain, as well as an increase in the number of validators.

In October, it became known that the National Bank of Kazakhstan will integrate the digital tenge with BNB Chain. This will allow the Central Bank to bridge the gap between traditional banking services and the cryptocurrency ecosystem.

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