Binance Chain has successfully executed its 26th quarterly BNB token burn, as officially announced by the BNB Foundation.
In this latest burn, a total of 2,141,487.27 BNB were eliminated, equivalent to approximately $636 million in market value, according to statements released by Binance.
BNB serves as the native cryptocurrency within the BNB Chain ecosystem, powering various components such as the opBNB L2s, BNB Greenfield blockchain, BNB Smart Chain, and BNB Beacon Chain.
Holders leverage BNB not only as a means of transactional value but also as a governance token for engaging with projects developed on these chains.
According to Binance’s announcement, the 26th BNB quarterly burning has been completed. A total of 2,141,487.27 BNB was burned this time, worth approximately US$636 million. https://t.co/EBSLOVBUhu
— Wu Blockchain (@WuBlockchain) January 17, 2024
Only 100 Million BNB Is Designed To Remain In Circulation
Since its introduction in 2017, BNB committed to burning 100 million BNB, effectively removing half of its entire supply from circulation. The Auto-Burn algorithm facilitates the automatic execution of this commitment on a quarterly basis. This mechanism is designed to ensure that only 100 million BNB will remain in circulation over time.
Importantly, the BNB Auto-Burn process operates independently of the Binance centralized exchange, offering a transparent and auditable procedure. The Real-Time-Burn mechanism further contributes to ongoing burns by systematically removing a portion of gas fees in real-time.
While the recent token burn marks a significant milestone, the impact on BNB’s market price has been limited, experiencing a 2% decline in the past 24 hours.
It’s worth noting that token burns are integral to the deflationary nature of some cryptocurrencies, aiming to enhance scarcity and potentially influence long-term value dynamics.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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