Major cryptocurrency exchange Binance has announced that the latest quarterly $BNB token burn destroyed over 2.06 million tokens worth more than $600 million at the time of writing.
Binance announced that a total of 2,064,494.32 BNB were burned in the transaction and a total of 7,181.03 tokens were burned from the cryptocurrency trading platform’s Pioneer Burn Program. Binance counts as burnt BNB tokens that users accidentally send and lose. Recover unrecoverable addresses and cover losses with BNB set to burn. 2,057,313.29 BNB will be burned as part of the automatic burn system.
Binance’s $BNB burn mechanism is intended to help reduce the cryptocurrency supply from 200 million to 100 million. The mechanism has undergone many changes over time, such as helping to speed up the burn after the BNB price surge.
So far, cryptocurrency exchanges have been able to burn 21% of their total burn volume.
Note that burning a token requires sending it to a black hole address, or an address on the network that no one controls. Since no one controls these addresses, their tokens are permanently removed from circulation, reducing the circulating supply of cryptocurrencies.
Aside from Binance’s quarterly autoburn, the native network of the $BNB token, BNB Chain, introduced BEP-95 in October 2021. Collected by validators.
The exact percentage burned through BEP-95 will be determined by an on-chain governance mechanism, ensuring that these burns will continue to occur even after Binance has reached its goal of burning half of the total supply of $BNB. It is set.
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In its announcement, Binance detailed that since the introduction of BEP-95, a total of 145,000 tokens have been burned by the mechanism. However, the last quarter saw an incident impacting BNB burns, as an exploit in the BSC Token Hub bridge led to the creation of “about 2 million he BNB.”
The issuance of new tokens increased the maximum supply of BNB to 202 million, but BNB community validators were able to quickly burn 1.02 million of these tokens. The rest of the tokens are set to be burned by the burning process above.
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