Binance has completed its 25th quarterly burn program, removing 2,139,182 BNB tokens from circulation. The incinerated tokens, worth approximately $501 million, represent 1.38% of BNB’s total supply.
Token burn is when a certain amount of cryptocurrency tokens are permanently removed from circulation. The process involves sending the tokens to a “burn” address with no known private keys, making them inaccessible and lost forever.
Following BNB’s launch in 2017, Binance committed to burning 100 million coins, or 50% of its total supply, to boost deflationary shock. This mechanism also helps reduce the supply of the token, increase its scarcity, and support its price in the long term.
Binance conducts its burn program quarterly, with the coin now having a supply of 151.7 million coins following the latest burn. The current figure notably means that Binance is now almost halfway to its ultimate target of having a supply of just 100 million coins.
BNB Follows Burn Schedule
The leading crypto exchange stated that its 25th quarterly burn schedule includes 314 BNB burnt from the Pioneer Burn Program and 2,138,868 coins from Real Burn (Auto-Burn – Pioneer Burn).
The Pioneer Burn Program is an initiative introduced by Binance in 2020 to help users who lose tokens through errors made on the BNB Chain. Under the program, the exchange covers users’ losses and counts the lost tokens under its quarterly BNB token burn activities.
Auto-Burn System
Binance calculated the latest amount of tokens removed from circulation using the Auto-Burn formula. Introduced in December 2021, the automatic burning mechanism weighs the amount of BNB to be burned based on the token’s price and the number of blocks produced on the BNB Chain during the quarter.
This method, according to Binance, offers “greater transparency and predictability to the BNB community.” Before introducing the Auto-Burn mechanism, the exchange burned BNB based on the trading volume on the Binance exchange.
Meanwhile, the above chart shows that BNB reacted positively to the latest news of its 25th quarterly burn program. The coin sharply rose by nearly 3% on the news. At the time of writing, the coin trades at $212.70, representing a 2.61% increase on the day.
