Binance Destroys $165M in BNB with Latest Coin burn, Highest to Date
Quick take:
- Binance has carried outs its highest quarterly coin burn to date
- 3,619,888 BNB or $165,791,000 worth of BNB, was removed from circulation forever
- Binance has released details of its new accelerated BNB coin burn program
- The old plan would take 27 years to complete with the accelerated version compressing it to 5 – 8 years
The crypto exchange of Binance has just carried out its largest quarterly coin burn ever. According to the team at Binance, the 14th quarterly coin burn removed 3,619,88 BNB from circulation with the equivalent value of $165.791 million. With the latest coin burn, Binance has cumulatively reduced the total supply of the coin to 170,532,825 BNB.
Below is an infographic, courtesy of Binance, highlighting past coin burns and the magnitude of the latest one.
Plans to Accelerate the BNB Coin Burn Program
The quarterly coin burns have been part of a plan by the exchange to reduce the total supply from the initial 200 million to 100 million BNB. This plan was part of the project’s whitepaper with the team still very much committed to its final goal.
However, CZ has pointed out that the current rate of the BNB coin burns would take a total of 27 years to complete the objective. The team has thus proposed a faster program that would achieve its goal in 5 – 8 years by burning more BNB each quarter. The latest coin burn is the first accelerated BNB coin burn.
Binance CEO, Changpeng Zhao, further explained the reason behind the accelerated coin burn program.
Initially, the speed of the burn was associated with trading volumes on Binance. This turns out to be somewhat “slow”, or at least slower than we originally anticipated…
Over the last three and a half years, we have burned about 13% of the promised amount, with a total USD equivalent value (nominal) of $426,304,000. Even though this is an impressive amount for a three-year-old startup, at that rate, it would take roughly 27 years to finish the burn.
So, we thought it’s time we speed it up a bit. Exactly how much faster? We are not 100% sure. The current accelerated burn would put the trajectory to be around 5-8 years to finish the 100 million BNB. But a number of factors could change the accelerated part in the future, including BNB price fluctuations, overall market conditions, and more.
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