18th January 2022
Token burns are supposedly deflationary and usually meant to bring a store of value appeal to the cryptocurrency.
Cryptocurrency exchange Binance implemented its first-ever binance token (BNB) auto-burn program last quarter, removing over 1.6 million BNB tokens worth $750 million from circulation.
Under the new program, the number of tokens to be burned is arrived at using a formula based on the total number of blocks produced on the Binance Smart Chain, a programmable blockchain powering smart contracts and running parallel to Binance Chain
Compared with the previous token burn methodology , this time it is expected to make the process more objective and clear to the BNB community.
Binance is committed to destroying 100 million BNB tokens, amounting to 50% of the circulating supply, through quarterly burns. According to data source Coin Tools, the exchange has destroyed nearly 35 million tokens via quarterly burns to date, having begun the program in late 2017.
