Binance exchange burned BNB tokens worth $444 million
The largest cryptocurrency exchange Binance continues to burn BNB tokens. The next, twentieth quarterly procedure for the withdrawal of tokens from circulation was carried out today, July 13. The general director of the trading platform Changpeng Zhao announced this to the readers of his Twitter.
Burning tokens is a procedure for destroying them to reduce emissions. This method is used to combat inflation and increases the value of cryptocurrencies. All token burning operations are recorded in the blockchain as a transaction. Anyone interested can check that the coins have been destroyed.
Today's burning can also be verified in the blockchain.
Thus, according to the results of the second quarter of 2022, 1,959,595.29 BNB worth approximately $444.6 million were withdrawn from circulation at the time of burning. The transaction fee was traditionally only 0.002 BNB.
At the end of December, Binance announced that the procedure for automatic withdrawal of BNB from circulation Auto-Burn will be introduced to replace the outdated usual burning protocol. Binance explained that Auto-Burn will provide more "transparency and predictability" for the community. The Auto-Burn algorithm does not take into account the revenue generated by the Binance trading platform, but is based only on the price of BNB and the number of blocks mined during the quarter. The Auto-Burn protocol will work until the total BNB emission drops below 100 million.
In the third quarter of 2021, the exchange burned 1,335,888 BNB worth about $639 million. In the fourth quarter of 2021, 1,684,387.11 BNB worth $795 million were burned.
In January 2021, Binance burned a record 3,619,888 BNB, which in fiat equivalent amounted to $165.8 million. The previous record was set in October 2020 - the exchange withdrew 2,253,888 BNB from circulation.
In the first quarter of 2022, 1,830,382 BNB worth approximately $772 million were withdrawn from circulation at the time of incineration.
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