Binance exchange burned $575 million worth of BNB tokens

The largest cryptocurrency exchange Binance continues to burn BNB tokens. The next, twenty-second quarterly procedure for the withdrawal of tokens from circulation was held today, January 17. General Manager of Changpeng Zhao Marketplace announced about this to the readers of his twitter.

Burning tokens is a procedure for destroying them in order to reduce the emission. This method is used to fight inflation and increase the value of the cryptocurrency. Since 2017, Binance has been aiming to withdraw 100 million tokens, or half of the supply, from circulation. All token burning operations are recorded in the blockchain as a transaction. Anyone interested can verify that the coins have been destroyed.

Today’s burning can also be checked in blockchain.

Thus, according to the results of the fourth quarter of 2022, 2,064,494.32 BNB were withdrawn from circulation in the amount of more than $575 million at the time of burning. The transaction fee was traditionally only 0.002 BNB.

In 2021, Binance announced that it will replace the outdated burn protocol with the Auto-Burn procedure. Binance explained that Auto-Burn will provide more “transparency and predictability” for the community. The Auto-Burn algorithm does not take into account the revenue generated by the Binance trading platform, but is based only on the BNB price and the number of blocks mined during the quarter. Thus, the Auto-Burn protocol will work until the total supply of BNB falls below 100 million.

In the first quarter of 2022, 1,830,382 BNB were withdrawn from circulation, worth approximately $772 million at the time of the burn.

According to the results of the second quarter of 2022, 1,959,595.29 BNB were withdrawn from circulation, worth approximately $444.6 million at the time of burning.

In the third quarter of 2022, 2,065,152.42 BNB were withdrawn from circulation, worth more than $547 million.

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