Cryptocurrency exchange Binance held its twenty-second quarterly Binance Coin (BNB) token burn. 2.06 million coins worth over $575 million were withdrawn from circulation.
The 22nd quarterly $BNB token burn has been completed through #BNB Auto-Burn.
Here’s everything you need to know about the first quarterly burn of 2023 and some words from @cz_binance ⬇️https://t.co/sIrWpnUxIL
— Binance (@binance) January 17, 2023
The company launched a burn program in 2017 with the goal of withdrawing 100 million tokens from circulation – half of the total supply. From 2021, the number of coins removed automatically calculated using the Auto-Burn formula.
“BNB Auto-Burn provides an unbiased and independent review process. The numbers are reported quarterly and this mechanism is independent of Binance. In addition, BNB Chain still continues to burn part of the gas fee in real time using the Real-Time-Burn mechanism,” Binance CEO Changpeng Zhao said in a statement.
Of the total volume of coins withdrawn from circulation in the quarter, 7,181 BNB came from the Pioneer Burn program. The engine has burned over 145,000 BNB since its launch through the activation of the BEP-95 update.
Zhao recalled that an incident related to the burning of tokens occurred during the reporting period. As a result hacking On October 7, 2022, the cross-chain bridge BSC Token Hub issued an additional 2 million BNB, which increased the total supply. But 1.02 BNB was blocked by the decision of the validators and then destroyed. The remaining unscheduled issued coins will be burned through standard mechanisms.
According to the head of Binance, the process of migrating the BNB version of the ERC-20 standard to the native BEP-2 continues. After the platform stopped withdrawing coins on the ERC-20 protocol, the process accelerated. As a result, most of the total supply of 16 million such tokens was accumulated by the exchange. They will be burned and a corresponding amount of BNB (BEP-2) will be released instead, Zhao added.
“Having completed the first burn of 2023, we move on to the rest of the year and its possibilities. Looking at the state of the market, I hope and expect that the industry will continue to build in the long term and is on the path to recovery,” the founder of Binance concluded.
In early January, Zhao announced a sequel expansion of the staff of the exchange in 2023 by 15-30%.
Recall that during the previous quarterly burn, Binance also withdrew about 2.06 million BNB from circulation, the value of which at that time amounted to $547 million.
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