Binance has withdrawn from circulation BNB tokens by almost $620 million
Cryptocurrency exchange Binance has withdrawn from circulation BNB tokens by almost $620 million
Destruction of coins by incineration occurs on the exchange on a quarterly basis. The program will end when the total supply of tokens is reduced to 100 million pieces
Cryptocurrency exchange Binance has conducted another quarterly burn of BNB tokens (BNB). Just over 2 million BNB tokens were destroyed for a total value of about $619.8 million.
Burning is the elimination of a certain number of tokens to reduce their issuance.
BNB's token destruction program was launched in 2021. Before that, the company used 20% of its profits to redeem the tokens and burn them. Now there are Auto-Burn and Pioneer Burn automatic token destruction mechanisms on the Web.
The Auto-Burn algorithm calculates the number of tokens to remove from circulation based on their price and the number of blocks mined during the quarter. The more expensive the BNB, the fewer tokens are eliminated. The Auto-Burn mechanism burned 2.019 million BNBs worth a total of $619.6 million on April 14.
Pioneer Burn is a protocol that returns tokens lost due to errors to users. Under this program, the platform covers users' losses in "approved cases," and the lost tokens are included in the total amount of BNB burned each quarter. This time, 656 BNB ($200k) were destroyed under the Pioneer Burn program.
The burn program is scheduled to end when 100 million of the 202 million issued coins remain in circulation. Now there are about 155.86 million BNBs left in circulation, with nearly 46.14 million burned.
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