Binance Burns 1.7 Million BNB ($797M) in 18th Quarterly Burn
Binance, the world’s largest cryptocurrency exchange, has recently completed another quarterly burn of its native token, Binance Coin (BNB). As noted in the company’s roadmap, Binance burned 20% of the profit realized in the just concluded 18th quarter.
Per the announcement, approximately 1.7 million BNB (worth about $797 million at press time) were removed from circulation this quarter, with an additional 6,296 BNB (worth $2.95 million as of press time) also burned via the Pioneer Burn Program.
The value of coins that were burned suggests that the exchange made a total of $4 billion in profit within the last quarter. Impressively, it means the latest quarter recorded a significant increase of about $800 million as against last quarter’s profit of $3.2 billion.
BNB Auto-Burn Protocol
Worth noting, however, is that unlike previous quarterly burns, which were based on revenue generated from the Binance Centralized Exchange, the latest BNB burn was processed differently.
Binance recently adopted a new program termed BNB Auto-Burn, which as the name implies, would automatically calculate the number of tokens that would be burned per quarter-end.
Under the program, the number of tokens to be burned is arrived at using a formula based on BNB’s price, which reflects supply and demand, and the number of blocks produced for that quarter.
The latest development by the exchange opens a new record of being the first-ever auto-burn in Binance’s history.
Commenting on the newly introduced procedure, Changpeng Zhao, co-founder of Binance, said, “The implementation of the BNB auto-burn is a natural next step in BNB’s journey and would help the BNB community grow through providing greater autonomy, transparency and predictability.”
BNB Unaffected by Burn
The latest development by Binance does not seem to be having any significant impact on BNB.
In fact, on the 17th of January, a day after the company announced the burn, BNB traded between $473.85 and $483.65. According to data from cryptocurrenciestowatch.com, the token was trading at $464.82, as of press time, representing a 4% decrease within the past 24 hours.