• Binance announced its 22nd BNB burn and first quarterly burn of 2023.
• 2.064 million BNB, or around $620 million at today’s values, have been taken out of circulation.
• The Auto-Burn formula which is used by BNB provides an independently auditable, objective process.
Binance, the world’s leading cryptocurrency exchange platform, recently announced the completion of its 22nd BNB burn, taking 2.064 million BNB or around $620 million at today’s values, out of circulation. This is the first quarterly burn of the year 2023 and the second-highest burn since BNB’s introduction in 2017.
The Binance BNB token is a native coin of the BNB Beam, a decentralized blockchain platform. When BNB was first introduced, a commitment was made to burn a total of 100 million of the coin’s entire quantity, or half of it, eventually leaving only 100 million in circulation. This commitment is carried out automatically each quarter, with the Auto-Burn formula being used to determine the amount.
The Auto-Burn formula, which is used by BNB, provides an independently auditable, objective process. The figures are reported quarterly and the mechanism is separate from the centralized Binance exchange. A fraction of BNB Chain’s gas fees are still being burned in real-time by a bespoke mechanism. Based on the price of BNB and the quantity of blocks created on the BNB Smart Chain (BSC) during the quarter, the auto-burn mechanism modifies the amount of BNB to be burned.
In addition to the BNB burns, Binance has also been actively involved in other blockchain projects such as the Binance Chain and Binance Smart Chain. The Binance Chain is a blockchain platform for decentralized applications (dApps) and a decentralized exchange (DEX). The Binance Smart Chain is a public blockchain that is interoperable with the Ethereum Virtual Machine (EVM) and is capable of supporting smart contracts and decentralized applications.
The completion of this latest BNB burn is an important milestone for Binance and the cryptocurrency industry as a whole. With the Auto-Burn formula providing an objective, independent process for determining the amount of BNB to be burned each quarter, it is a testament to Binance’s commitment to providing a secure and reliable trading platform. This burn is also a sign of the increasing acceptance of blockchain technology and cryptocurrencies in the mainstream.