Binance made a new announcement today. However, before making the announcement, let us remind you once again how important it is to burn tokens. This procedure, known as the token burn mechanism, is an action that adds value to the cryptocurrency. Let’s move on to the announcement made by the leading cryptocurrency exchange Binance.
Binance made the new announcement
According to the BNB burn portal, there is a significant improvement. Binance will burn 1.99 million BNB tokens in its 24th quarterly burn mechanism. Binance aims to reduce the circulating supply of BNB below 100,000,000 through the BNB Auto-Burn procedure. BNB price took a hit amid the Binance SEC lawsuit. Accordingly, it has been moving sideways near the $250 level for more than a month.
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— Binance (@binance) July 18, 2023
Binance made the announcement on Twitter on July 18 to announce the quarterly BNB burn that will take place today. Binance burn portal announced that 1.99 million BNB tokens were burned in the 24th quarterly BNB token burn via the BNB Auto-Burn procedure. The most recent quarterly BNB burn also includes BNB burned through the Pioneer Burn Program.
What does the data say?
The data shows that Binance will burn approximately 2 million BNB tokens worth approximately $619 million. Thus, Binance will remove another 2 million BNB tokens from the circulating supply. Currently, the circulating supply of BNB token is 155,848,103 BNB. The crypto exchange has burned a total of 48 million BNB tokens so far.
The exchange uses an Auto-Burn protocol to reduce the total circulating supply to 100,000,000 BNB. The mechanism follows a certain path in the amount of BNB to be burned. It calculates based on the BNB price and the number of blocks produced on the BNB Snart Chain (BSC) during the quarter.
BNB token burning
According to the BNB incineration portal, the estimated value of the next incineration is 2,097,345.77 BNB. However, available data indicates that the number of BNB tokens is likely to increase in the 25th quarterly BNB token burn. On April 14, Binance burned 2,020,132.25 BNB tokens worth $542 million in its 23rd quarterly BNB burn. The estimated 24th quarter BNB token burn at that time was 2,009,639.84 BNB.
cryptocoin.com Token burning refers to the process of permanently removing cryptocurrency tokens from circulation. It involves sending tokens to an address or smart contract where they become unspendable and are effectively removed from circulation. Token burnings are usually carried out by cryptocurrency projects or exchanges. Accordingly, it is a way of reducing the total token supply in the market.
