Binance burns $453 million in its 25th quarterly BNB burn

Ali Raza
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Binance completed its 25th quarterly BNB burn, burning another 2.14 million BNB tokens over the past three months.

The total amount burned equals $453 million, according to the exchange’s announcement. The statement said that BNB completed its 25th fuel transaction earlier today, October 16. The post also noted that this was the exchange’s eighth fuel operation using the automated combustion system, and it was a complete success.

The statement explained that the quantity of BNBs that are to be burned is calculated by the automated combustion mechanism. The mechanism makes the calculation using the BNB pricing as well as the number of blocks created over the course of three months.

The exchange’s intention is to burn a total of 100 million BNBs, or around half of the total supply of 200 million BNBs.

Binance’s previous quarterly burn removed 1.99 million BNB tokens, which was around $484 million at the time. The exchange’s token-burning practice started in October 2017, and its goal is to eliminate half of the BNB supply on a quarterly basis. In doing so, the platform will increase the token’s scarcity and, in theory, create potential value appreciation.

BNB price’s response to the token burn

While the token burn included quite a substantial number of BNB, the token’s response to the burn has been relatively subdued. BNB did see an increase that took it from $206 to $214 in less than 24 hours, although this price performance may simply be a response to Bitcoin’s own short but rapid surge.

It is worth noting that the burning mechanism operates independently of Binance’s centralized exchange but also of the BNB Chain’s own burning mechanism, which burns gas fees in real-time. As a result, Binance is seeing a constant BNB supply reduction, although arguably, the amount burned from gas fees is lower and it comes more gradually than token burning events.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.