- CEO of Binance, Changpeng Zhao, revealed that this was the biggest burn in monetary value in the history of tokens burned by BNB
- And the fourth-largest burn in terms of token volumes. He further shared that BNB burned 2,253,021
Binance, one of the largest exchanges worldwide, on October 17, announced in a blog that they had burned $68 million worth of 2,253,888 BNB tokens. The tokens were burnt under the quarterly BNB Burn program.
CEO of Binance, Changpeng Zhao, revealed that this was the biggest burn in monetary value in the history of tokens burned by BNB. And the fourth-largest burn in terms of token volumes. He further shared that BNB burned 2,253,021 BNB in their first quarter while an additional 867 under the Pioneer Burn Program.
What is Binance’s Pioneer Burn Program
Often BNB holders mistakenly transfer crypto tokens to a blockchain system over which no one has control. This leads to financial losses to those token holders, its users, and supporters. To support such BNB holders, Binance has launched Pioneer Burn Program under which if users losses it BNB tokens from the ways listed in their blog, Binance will cover all the losses.
Binane also stated that all the BNB tokens that will be sent back to users through this program would be reduced from the quarterly burn program of Binance.
Why Does Binance Burn its BNB?
Burning, as mentioned, is destroying one’s tokens and is precisely the opposite of minting. Different cryptocurrencies are often destroyed by the network to create the scarcity of the coins and maintain the total circulation supply under control. Binance usually purchases the BNB tokens from the open market through its profits and then burns them.
Presently, Binance aims to reduce the market supply of 144,406,561 BNB tokens to under 100 million BNB tokens. Soon after the BNB tokens were burned, the effect could be seen on its market price. The price of BNB rose to $30.84, with an increase of 1.68% at writing.
Not the First Instance Binance Burned BNB
In the last quarter, Binance burned 3,477,388 tokens, which were 1.47 per cent of its total supply. The burned tokens at the time were worth $60.5 million. Previous to that quarter, it burned 1.69 per cent tokens of the total supply worth $52.4 million.