As per the recent development, Binance has successfully completed its 24th quarterly burn of BNB tokens accounting for more than $480 million. Binance carries out the burning process every three months to reduce the overall supply of the token to approximately 100 million. The largest cryptocurrency exchange initially burned 1,991,854 tokens but later burned an additional 747.51 BNB tokens via the Pioneer Burn Program. This is a feature that permanently burns the BNB tokens of customers who have lost access to them.
Not sure what the BNB Auto-Burn is?
Give this a read 👇 https://t.co/C5wlki9Lmb
— Binance (@binance) July 19, 2023
The tokens burned through the Pioneer Burn Program are then counted toward the total quarterly burn figure. The Pioneer Burn Program, along with BNB Auto-Burn and Real-time Burn (BEP-95) mechanisms used in the 24th burn have mostly remained the same when compared to the previous burn. These processes are transparent and can be verified individually. Ever since the introduction of BEP-95, tokens exceeding the 146,340 mark have been burned through the use of this mechanism.
Not too long after the completion of the burning process, the CEO of Binance, Changpeng Zhao, stated that the burning process was carried out according to the public algorithm. However, several analysts believe that the upcoming 25th quarterly burn might involve the permanent destruction of approximately 2 billion BNB tokens. If these tokens are analyzed keeping in mind the current market price, it comes to light that these tokens would currently be over $512 million.
Binance Coin (BNB) Remains Unfazed Following Burn
Despite the burning being carried out, it has become evident that BNB remained increasingly unfazed. At the time of writing, the token is currently trading for approximately $242. The token has increased by a mere 0.18% in the previous 24 hours and its total market cap currently stands at the $37 billion mark.
Since 2017, Binance adopted the strategy of sending a certain number of BNB tokens to an address no one can access in each quarter. Over the years, the exchange has burned tokens worth billions of dollars and currently aims to reduce the token’s overall supply by a staggering 50%. Similarly, the circulating supply of BNB tokens is subject to fluctuations, and the actual number of tokens burned may vary greatly.