Binance removed over two million of its native cryptocurrency from circulation. Since the introduction of BEP95, over 145,000 BNB has been burnt under this mechanism.
As part of a larger program, BNB Chain has finished burning approximately $575 million worth of its native BNB coins, Binance reported on Tuesday. According to reported data, the burn was carried out on Tuesday morning about 8:00 UTC in transaction 34167E903B9F662A64817266D8A6CE4FE096868DAD0B883E4F838331E280EEFF.
Token burning is the process of permanently removing currency from circulation. It is expected to burn more than 100 million BNB, or half of its entire supply, to remove them from circulation and finally leave just 100 million BNB in circulation. The Auto-Burn algorithm is used to compute this commitment, which is automatically honored each quarter.
The BNB Auto-Burn offers a technique that can be objectively and independently audited. The method is separate from the Binance controlled exchange, and the numbers are provided on a quarterly basis. BNB Chain still uses a customized technique to burn a portion of its gas costs in real-time.
Based on the price of BNB and the quantity of blocks created on the BNB Smart Chain (BSC) throughout the quarter, the auto-burn mechanism modifies the amount of BNB to be burnt. The native coin of the BNB Beacon Chain and BNB Smart Chain, BNB fuels the BNB Chain ecosystem.
Binance Price Activity
Along with the rest of the market, Binance’s native cryptocurrency has been on a tear this year. At about $240 when 2023 began, it saw a double-digit increase during the next few weeks. The price of BNB increased to $315 on Saturday, marking the highest price since late November 2022 as a result of this spike. The asset continues to trade over $300 despite a small retracement since then.
BNB was trading around $300 on Tuesday morning, up little over the previous 24 hours. Trader’s sentiments did not respond to the news of the burn right away.