The crypto exchange Binance has burned over 3.6 million BNB tokens, removing approximately $ 165.8 million worth of tokens from circulation.
Binance made the biggest BNB burn
This 14th quarterly BNB token burn was recorded as the highest ever token burn by the exchange.
When Binance launched BNB, it committed to burning 100 million BNB (roughly half of its supply) to reduce the supply. The amount burned by the exchange is based on the trading volume on the platform in the previous quarter. Both BNB holders and Binance continue to benefit from the corresponding increase in token price.
Binance CEO Changpeng “CZ” Zhao stated that most of their revenue is in BNB.
Binance has burned about 13% of its total supply in the last three and a half years. In a statement on Monday, Zhao said it would take about 27 years to do this, but the exchange is trying to speed up this process.
Burning speed can vary
Zhao said in the announcement:
How fast exactly? We are not 100 sure. Current accelerated burning will take about 5-8 years to finish 100 million BNB. But in the future, a number of factors could change the pace, including BNB price fluctuations, general market conditions, and more.
Zhao added that one consequence of the accelerated burning process is that users will no longer be able to “reverse calculate” Binance’s revenue based on burned BNB.