Binance Burns $450M in BNB Tokens in 25th Quarterly Burn to Enhance Scarcity

Binance Burns $450M in BNB Tokens in 25th Quarterly Burn to Enhance Scarcity

News, Altcoin news

Leading crypto exchange Binance has completed its 25th quarterly burn of its BNB token, removing approximately $450 million worth of coins from circulation.

A total of 2.13 million BNB was destroyed in the latest burn, equating to 0.4% of the token’s total supply.

Ongoing Commitment to Deflationary Model

Through its regular coin burns, Binance aims to enhance BNB’s scarcity and value over time. Previous burn events eliminated between 0.41% to 1.74% of BNB’s supply.

The predictable burns provide confidence to BNB holders that the circulating supply will keep decreasing.

Leveraging Auto-Burn and P2P Burns

Unique to the 25th burn was usage of Binance’s BNB Auto-Burn system which automatically destroys a portion of fees the exchange collects each quarter. This adds transparency.

Binance also incorporated its newer Peer-to-Peer (P2P) Burn program where users voluntarily send BNB to irrevocable burn addresses. An extra 314 BNB tokens were incinerated this way.

Broader Impacts Beyond Supply Reduction

While directly reducing token circulation, the burns also have indirect effects like signaling Binance’s long-term outlook and reinforcing BNB’s deflationary credentials.

This helps bolster Binance Coin’s appeal as an asset that can potentially appreciate in value over the long run thanks to provable scarcity mechanisms encoded into its design.

By consistently executing the coin burns and even enhancing them with innovative features like P2P and Auto-Burn, Binance maintains strong fundamentals for its native token.

Binance, BNB

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