Cryptocurrency exchange Binance has finished its 18th quarterly token burn, removing roughly 1.6 million Binance Coin (BNB) tokens from the ecosystem. The latest token burn utilized its new auto-burn program to determine the number of tokens to be burned.
Binance Destroys $745 Million Of BNB
Nothing sparks demand quite like decreasing supply. Burning occurs periodically to increase the scarcity of the token, theoretically boosting the price. At least that’s what is expected to happen. Just ask Binance, the eponymous exchange behind the BNB cryptocurrency.
According to an announcement published on January 17, Binance destroyed a total of 1.68 million BNB worth roughly $745 million at today’s prices. The exchange reiterated its commitment to completely eliminating 100 million BNB, representing 50% of the total supply from circulation via quarterly burns.
The latest burn is the 18th quarterly coin burn and it destroyed an amount equivalent to 0.84% of BNB’s initial 200 million supply. Binance has destroyed approximately 34 million BNB so far since the token-burning program commenced back in 2017.
Binance’s New Auto-Burn Mechanism
Notably, Binance used a new auto-burn model for its 18th quarterly burn. This new system calculates the number of tokens to be destroyed using a formula based on the number of blocks created by Binance Smart Chain and the average price of the BNB token during the quarter.
Binance previously determined the number of coins to be burned using a technique based on the profits generated by the exchange. This new auto-burn mechanism is intended to be more objective and abundantly clear for BNB enthusiasts.
Binance CEO Changpeng Zhao indicated that the new technique, which was implemented after community feedback, will “help the BNB community grow through providing greater autonomy, transparency, and predictability.”
The latest quarterly burn slightly exceeded the 17th burn — when a total of 1.34 million BNB tokens were wiped out.
The 18th burn did not pump the price of the token. As it stands, BNB’s value is down 3.1% over the last 24 hours, according to data provided by Coingecko. One BNB is currently worth $465.20. BNB is the fourth-largest cryptocurrency by market value, standing at more than $78 billion.