Binance Coin Completes Quarterly Burn: Over 1.83 million BNBs are automatically destroyed, worth $740 million

Binance, the world’s leading cryptocurrency exchange, announced yesterday (19th) that it has completed the 19th burn of its platform currency BNB, which is also the first time that Binance has executed an Auto-Burn this quarter (2022Q1).

According to data from “BNBBurn.info”, the total amount of BNB burned this season was 1,839,786.26, worth more than $740 million, which was destroyed at an average price of $403 per block yesterday. At the same time, data shows that more than 1.81 million BNB are expected to be automatically destroyed in the next quarter, which is estimated to take place in August.

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BNB automatic destruction mechanism

In December last year, the BNB chain launched an automatic burning mechanism to replace the original quarterly burning of coins. In addition to providing transparency and predictability for the community, Binance CEO Changpeng Zhao (CZ) once said that this mechanism is to allow BNB to be more efficient than exchanges. The coin is a giant step closer to the DAO structure.

It is estimated that this process will also have a deflationary effect. The amount of coin burning will be automatically adjusted based on the price of BNB and the quarterly number of blocks calculated based on the information on the chain, which can reflect the supply and demand of BNB. When the total circulation of BNB drops below the target 100 million, the automatic destruction mechanism will stop working.

At present, this mechanism operates in parallel with BEP-95, the real-time destruction mechanism of Gas Fee, which was introduced after the Bruno upgrade at the end of November last year. Since the upgrade, the BNB chain has burned about 860 BNB per day.

Additionally, data shows that over 37 million BNB have been burned from a total supply of 200 million to date, bringing the total BNB circulating supply down to about 162 million.

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BNB rose more than 5.3%

The burning of coins made BNB bullish. From the low of $403 on the 19th, it rose 5.3% to $424.7 when the coin was burned. It was reported at $421.5 before the deadline, with an increase of 1.33% in the past 24 hours. It is the fourth largest cryptocurrency by market value.


Post time: Apr-28-2022