Leading cryptocurrency exchange Binance announced on Oct 17 that it has completed the 13th quarterly BNB token burn, which was also the largest ever in the exchange’s history so far, in terms of approximate USD value, however not in terms of BNB tokens. The team burned over 2.25M BNB tokens, representing 1.27% of the total supply and currently worth over $68M.
For comparison, the last Binance 12th quarterly burn, removed 3.4M tokens from the supply, worth over $60.5M at that time and totaling over 1.74% of the total supply. As of Oct 17, the available supply of BNB tokens is 144M, out of total 179M tokens.
Binance Mechanism Of Burn
Binance does the quarterly burn every quarter or three months, but the methodology of the burn remains unclear and unknown. It should be released in the public domain, for transparency and demonstration of good faith.
By loading the tweet, you agree to Twitter’s privacy policy.
Learn more
Why does it matter? It’s important, because the purpose of the token burn is to reduce available supply and thus have a positive effect on the BNB token’s price. So, users need to be able to establish if the burn would have a positive effect on the token’s price.
By loading the tweet, you agree to Twitter’s privacy policy.
Learn more
In the first case, a BNB buyback from the exchange using the company profits would allow the users to sell tokens to the Binance and earn profit in the ensuing buying spree. It would also reduce the circulating supply.
Second case and one which is suspected, Binance burns tokens from the already held token reserves, not yet in circulation and hence the burn doesn’t have any positive impact on the token’s price, at least in the short and medium term.
Binance Smart Chain
In Q3 2020, Binance also launched the Binance Smart Chain – a new high performance and low fees blockchain platform with ability to implement smart contracts and bridged interoperability with Ethereum Virtual Machine (EVM).
The following are the other main attributes of Binance Smart Chain :
- Proof of Stake (POS) consensus: A variation of Proof of Stake. Yes, this means BNB will be used for staking soon!
- Cross-Chain Transfer
- Cross-Chain Contract Event (Trade, Transfer)
- Block time ~5 seconds
BNB tokens have found additional use cases on the newly launched Binance Smart Chain. It’s used for executing transactions, paying for transaction charges, proposing and voting on new trading pairs, staking for governance on the chain etc.
Other developments carried out by Binance are:
- Creation of $100M USD accelerator fund for the chain, to bridge centralized and decentralized finance. There are six initial projects receiving funding.
- Also, the token canal project to support the issuance and usage of more assets on Binance Chain and Binance Smart Chain.
- The Panama project to allow users to bridge their cross-chain assets from wallets to Binance Smart Chain.
- Provision of $10M in liquidity support for BSC-ecosystem based projects and $5M to BSC-BUIDL rewards program to reward developers on the new chain.
- An initiative to help users who have mistakenly sent funds to smart contracts, they are refunded by the Binance team via “Pioneer Burn Program” and the tokens added to the next quarterly burn.
Follow CryptoTicker on Twitter and Telegram for daily crypto news and price analyses!
It is super easy to buy Bitcoin. Just take a look at our exchange comparison!
Follow us on Social Media and subscribe to our free crypto newsletter!
@Telegram
@Instagram
@Twitter
@TikTok
@Facebook
Diskutiere mit uns!
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
You might also like
More from Binance
Top 5 Performing Cryptocurrencies of the Week -(Week 30)
The crypto market is displaying a crazy drive at the moment. This post is all about top 5 cryptocurrencies that …
Binance Coin Hits New All-Time-High, What Lies Ahead
If you have been following the market since December 2020, you would have seen dramatic positive gains in the cryptocurrency …
Bitcoin Surpasses $20K: Three Coins to Watch in the Coming Months!
As Bitcoin surged past an all-time high of $20,000 on Wednesday, the sixteenth of December, 2020, many in the marketplace …
