Binance, the world’s largest cryptocurrency exchange, has announced the 21st quarterly burn of Binance Coin (BNB). In total, 2,065,152.42 BNB was withdrawn from circulation, this amount corresponds to R$ 2.87 billion.
The initiative is a proposal by the brokerage to reduce BNB’s offer in the market and has been applied since 2017. Since the launch of the program, nearly 39 million BNB (R$54 billion) has been burned.
Such a proposal is similar to Ethereum burns. However, in the case of BNB, no new coins are created as with ETH, increasing the effectiveness of this mechanism.
Binance Coin, an industry success story
In addition to offering trading fee discount on Binance itself, the burn model was another implementation that ensured BNB’s success. Cryptocurrencies are getting scarcer every quarter.
No wonder, today BNB is the fifth largest cryptocurrency by market capitalization, behind only Bitcoin and Ethereum, next to Tether and USDC stablecoins.
At the moment, each BNB is trading at $262. While far from the $690 peak recorded in May last year, it’s worth remembering that the cryptocurrency traded for a meager $0.10 five years ago. came. In other words, BNB is up 262,000% since its inception.
Binance’s 21st BNB Burn
In an announcement posted Thursday (13), Binance pointed out that more than 2 million BNB were burned. The amount corresponds to R$2.87 billion in the current conversion.
In total, the exchange plans to burn half of its currency supply. In other words, while fiat currencies lose value due to governments printing them, Binance went in the opposite direction, which was a great monetary experiment.
“Since the launch of BNB and Binance in 2017, we have committed to taking 100 million BNB, or half of the total supply, out of circulation through a combustion process.”
Much of the burnt amount comes from Binance’s own earnings from trading fees. That is, the brokerage firm waives part of the profits to strengthen BNB.
In addition, part of the transaction costs on BNB Chain is also burned, as is the case with ETH on its network.
Finally, it is worth noting that the amount is comparable to that of the R$3 billion BNB hack last week. Therefore, these numbers reflect the strength of the project.
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Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
