Binance burns $575 million worth of BNB tokens

In total, the platform will withdraw 100 million coins from circulation as part of the program

13.10.2022 - 13:00

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What’s new? The BNB Chain network, developed by the Binance crypto exchange, completed its 21st and last quarterly burn of native tokens BNB in 2022. A total of 2 065 152,42 BNB worth $574,8 million was taken out of circulation. This number includes 4 833,25 coins burned as part of the Pioneer Burn Program. Binance reported on its blog.

Binance Blog

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 April, Binance burned $741 million worth of BNB as part of its 19th quarterly burn.

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.

As of October 13, 12:30 UTC, BNB is trading at $258,6, down by 4,51% in 24 hours.

On October 7, hackers withdrew more than $100 million in cryptocurrency from the BNB Chain. They exploited the vulnerability of the BSC Token Hub cross-chain bridge and were able to conduct a double-spending attack. On October 12, the developers successfully launched the Moran hard fork aimed at fixing this vulnerability.

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