- BNB’s total supply shrank to almost 150 million, compared to 200 million at the time of launch.
- BNB was up 2.86% at the time of writing.
Binance announced the completion of its 25th quarterly token burn event, aimed at reducing the supply of the ecosystem token BNB.
In a blog postthe crypto giant stated that almost 2.13 million BNB coins were withdrawn from circulation in the latest round. The strategic move was part of Binance’s push to make BNB more scarce and valuable in the near future.
Is your portfolio green? View the BNB Profit Calculator
Breaking down BNB’s fire mechanism
When BNB launched in July 2017, it promised to remove half of the total supply, or 100 million BNBs, from circulation through a combustion procedure. This obligation is automatically honored every quarter and calculated according to the Auto-Burn formula.
The Auto-Burn mechanism automatically adjusts the amount of BNB to burn based on the BNB price and the number of blocks generated on the BNB chain during the quarter. Moreover, BNB Chain also burns part of the gas costs in real time using the Real-Time-Burn mechanism.
In addition to the above mechanisms, the Pioneer Burn program also helps reduce the circulating supply of BNB. The unique initiative takes into account lost money as part of BNB Chain users’ mistakes in the overall brand offering. In the last round, 314.69 BNB tokens went up in smoke due to the Pioneer Burn Program.
How did BNB respond?
At the time of writing, the Binance ecosystem was about halfway to its goal. Total supply has shrunk to almost 150 million, compared to 200 million at the time of BNB’s launch. CoinMarketCap.
BNB was up 2.86% at the time of writing. However, it would not be fair to attribute the increase solely to the fire event. The broader market recovered in the past 24 hours, data showed. At the time of writing, BNB was the fourth largest cryptocurrency with a market capitalization of over $32 billion.
How much are 1,10,100 BNBs worth today?
Interestingly, despite BNB’s positive price action in recent days, investors were not too optimistic about the exchange token. Santiment data showed a noticeable difference between weighted sentiment and BNB’s market value.
Source: Santiment
