BNB Chain Burns Nearly $500M Worth of BNB Tokens

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BNB Chain Burns Nearly $500M Worth of BNB Tokens

Coindesk2023/07/19 11:11

By:Shaurya Malwa

The burned tokens are now permanently destroyed, which makes circulating tokens more valuable if demand increases.

Money to burn cash on fire (Jp Valery/Unsplash)

Blockchain BNB Chain today burned over 1.99 million bnb (BNB) tokens in a planned move under the "auto-burn" mechanism in what is the token's 24th quarterly burn event, shows.

Some $484 million worth of the tokens were effectively taken out of circulation. Token burn refers to the process of permanent deletion of coins from their circulating supply.

The burn was executed at 10:33 UTC in transaction .

BNB is the native coin of the BNB Smart Chain and BNB Chain-based networks such as Greenfield. It was issued by crypto exchange Binance after an initial coin offering in 2017.

BNB uses an auto-burn system that aims to reduce its total supply to 100 million BNB, from the original 200 million BNB, over time. The auto-burn mechanism adjusts the amount of BNB to be burned based on BNB's price and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter.

However, the burn event failed to create an immediate demand for BNB tokens among traders as prices over the past 24 hours.

Edited by Parikshit Mishra.

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