Binance, one among the top cryptocurrency exchanges worldwide, has just conducted its 22nd quarterly token burning of Binance Coin, its native token. The token burn took place on December 15, 2020 and saw an estimated 8,657,700,000.843 BNB (worth about $176 million at time of burn) permanently removed.
Binance is committed to the stability and overall health of the Binance ecosystem. The token burn is part Binance’s ongoing commitment. Binance is aiming to increase the utility and value of the token by decreasing the total supply.
According to Binance’s whitepaper, Binance spends 20% of its profits every quarter to buy back and then burn BNB until half of the total supply (100,000,000) is consumed. This process will continue up to 100 million BNB or 5 years.
Binance is also aligned with the vision of creating a DEX ecosystem. BNB plays a key role in this token burn. Binance DEX uses Binance Chain, a high performance blockchain that Binance developed. It allows users to trade and keep their assets in a decentralized fashion, giving them greater control and security.
Binance’s continued commitment to innovation in cryptocurrency and growth are demonstrated by its token burn and the launch Binance Smart Chain. Binance Coin holders will be pleased to see the token burn as a positive sign. It demonstrates Binance’s commitment to preserving the token’s value over time.
Binance’s 22nd quarterly token burn is an indication of its commitment to improving the stability and overall health of the Binance ecosystem. Binance has reduced the supply of BNB to increase token value and align with its vision for decentralized future.