Leading cryptocurrency exchange, Binance has completed the 21st quarterly burn of its native BNB coin, destroying approximately $575 million worth of assets.
Binance Burns Two Million BNB Tokens
Since launching five years ago, Binance dedicates 20% of its quarterly profits to the burning of some BNB tokens. The latest burn, which represents the fourth and last quarterly burn for this year, saw the permanent removal of 2 million BNBs worth about $574.8 million from circulation. This figure shows that the crypto exchange generated roughly $2.9 billion in profit last quarter.
The 2 million BNB tokens recently destroyed were automatically calculated through the auto-burn formula, a burn protocol introduced by Binance late last year. The mechanism calculates the amount of BNBs eligible for burning based on the token’s price and the number of blocks generated on the BNB Chain during the quarter.
The latest burn also includes approximately 5,000 BNB coins that were burned via the Pioneer Burn Program. The program is an incentive that was introduced by the exchange in 2020, to restore users’ tokens that were lost in the Binance chain because of unknown user errors.
BNB Burns in 2022
This year, approximately 7.5 million BNB tokens have been burnt by Binance. The first quarter of 2022 saw the exchange permanently remove about 1.7 million tokens from circulation. The second and third quarters each recorded the destruction of 1.8 million BNBs and 1.96 million BNBs respectively.
The last quarter recorded the highest amount of BNB coins burnt this year, with approximately 2.1 million BNBs destroyed.
Recall that Binance is dedicated to burning about 100 million BNBs as part of its attempt to boost deflationary effects on the token. The quarterly process will make BNB more scarce hence increasing its value in the long run.
According to Binance’s roadmap, the company will burn BNB tokens periodically until its maximum supply drops to 100 million. The current circulating supply is 159.2 million coins, according to BNB Chain explorer.
BNB Chain Exploited
Meanwhile, the BNB chain recently suffered a security attack that drained it of about $110 million worth of crypto assets. The incident, which happened last week, was executed by hackers who took advantage of a potential bug found in BNB Smart Chain’s (BSC) Token Hub to steal about 2 million BNB tokens.
