Binance burns $741,840,738 in BNB
Binance had announced to set up its BNB token destruction program to eventually decrease the supply to 100 million tokens. The exchange replaced its previous burn system, which was based on revenue generated on the Binance crypto exchange platform, with a more objective and independent system in late 2021.
The exchange thus continues to burn a portion of the gas fees from the Binance Smart Chain, but has also implemented its new quarterly burn protocol. This system uses a formula that takes into account the number of blocks created on the Binance Smart Chain as well as the market price at a given time to deduce the number of tokens to be destroyed.
Here is the formula
- B is the quantity of BNB to burn
- N is the total number of blocks produced on the Binance Smart Chain (BSC) during the quarter
- P is the average price of BNB against the dollar
The system has calculated the number of tokens to destroy for this 19th burn. On 20/04/2022, 1,839,786 BNB have been destroyed. That is a sum of 741,840,738 dollars at the current price. This burn includes the 9,403.8 destroyed by the Pioneer Burn Program. This burn is quite similar to that of the first quarter of 2021 when 1,684,387 BNB were destroyed for the modest sum of 797 million dollars.
Binance is thus pursuing its path towards a reduction of the supply to 100 million tokens in order to increase the scarcity of the token and thus push its price up in the long term.
You can view the transaction here: https://explorer.bnbchain.world/tx/7EA14BB56EF812C142242F360E938BF545E5E17446039DD7D9CB6C9D1EE09DB9