Lens1000
VIP Contributor
Binance has burned its 18th coin, lowering the supply of its Binance Coin (BNB) by 1.68 million units.
Binance announced on Monday, January 17th, that it had burned over 1.68 million BNB, which is roughly $792 million at current market pricing.
Binance reminded users that it has committed to withdrawing half of the total quantity of BNB from circulation, or 100 million tokens out of a total supply of 200 million. The amount burned today is equal to 0.84 percent of Binance's initial supply.
The purpose of a coin burn is to limit the supply of a cryptocurrency while maintaining a reasonable price by increasing demand for the tokens already in circulation. Tokens are sent to an inactive address to perform burns.
This is the 18th quarterly coin burn since Binance began the practice in 2017.
This quarter's burn was also the first to apply a new "Auto-Burn" methodology, which bases the burn amount on market prices and the number of Binance Smart Chain blocks created.
The goal of this new model is to be more objective than the old one. The new paradigm, according to Binance CEO Changpeng Zhao, will allow "more autonomy, transparency, and predictability." After receiving feedback from the community, the new model was chosen.
Burn amounts were previously determined based on BNB usage and revenue earned by Binance's exchange, according to Binance. The 17th quarterly burn of BNB resulted in 1.34 million BNB being removed from circulation.
Binance announced on Monday, January 17th, that it had burned over 1.68 million BNB, which is roughly $792 million at current market pricing.
Binance reminded users that it has committed to withdrawing half of the total quantity of BNB from circulation, or 100 million tokens out of a total supply of 200 million. The amount burned today is equal to 0.84 percent of Binance's initial supply.
The purpose of a coin burn is to limit the supply of a cryptocurrency while maintaining a reasonable price by increasing demand for the tokens already in circulation. Tokens are sent to an inactive address to perform burns.
This is the 18th quarterly coin burn since Binance began the practice in 2017.
This quarter's burn was also the first to apply a new "Auto-Burn" methodology, which bases the burn amount on market prices and the number of Binance Smart Chain blocks created.
The goal of this new model is to be more objective than the old one. The new paradigm, according to Binance CEO Changpeng Zhao, will allow "more autonomy, transparency, and predictability." After receiving feedback from the community, the new model was chosen.
Burn amounts were previously determined based on BNB usage and revenue earned by Binance's exchange, according to Binance. The 17th quarterly burn of BNB resulted in 1.34 million BNB being removed from circulation.