Numerous projects have incorporated deflationary mechanisms into their <a href="https://blockchainreporter.net/glossary/tokenomics/" rel="noopener noreferrer nofollow">tokenomics</a>, often achieved through a process known as token burn. Binance, a prominent industry player, is well-known for regularly eliminating portions of its native cryptocurrency, Binance Coin (BNB). In a recent announcement, Binance, the world’s leading cryptocurrency exchange, has conducted its 23rd quarterly BNB-burn, incinerating a staggering $676 million worth of Binance Coin (BNB) tokens. Over its six-year existence, the methods employed by Binance to execute these burns have evolved, reflecting the platform’s adaptability and commitment to enhancing its token’s value.<h2 id="header-0">Binance Burns 2 Million BNB Tokens</h2>In accordance with the BNB Auto-Burn process, Binance has successfully executed its 23rd quarterly token burn, incinerating a total of 2,020,132.25 BNB. This substantial burn event encompasses an additional 656.0230123 BNB that were effectively eliminated through the Pioneer Burn Program, further demonstrating Binance’s unwavering commitment to its deflationary tokenomics strategy.The recent burn event represents 1.27% of the total supply. Binance maintains its practice of quarterly token burns, as in the first quarter of 2023, the BNB Burn portal revealed that a total of 2.07 million BNB were slated for burning. Intriguingly, the burn formula for this quarter factors in a price of $275.12 per BNB, a figure lower than that of the final quarter in 2022.The BNB Auto-Burn is executed through a transparent, independently auditable, and objective process, completely separate from the Binance centralized exchange. Simultaneously, BNB Chain conducts real-time burning of a portion of BNB Chain gas fees utilizing the Real-Time-Burn mechanism.The Pioneer Burn Program also plays a role by permanently eliminating a quantity of BNB equivalent to provable lost funds of eligible BNB Chain users. This amount is then incorporated into the overall quarterly burn figure.Transparency and independent verifiability characterize all three mechanisms – the Pioneer Burn, BNB Auto-Burn, and Real-Time-Burn (BEP-95).<h2 id="header-1">Binance Aims To Keep BNB Circulation Under 100 Million</h2>Token burn signifies the permanent removal of coins from the circulating supply. <a href="https://binance.com/" rel="noopener noreferrer nofollow">Binance</a> has committed to eliminating over 100 million BNB, which equates to half of its total supply, through a burning process, ultimately leaving only 100 million BNB in circulation. This pledge is honored automatically every quarter, with the burn amount determined using the Auto-Burn formula, as previously reported.The introduction of BNB auto-burn coincided with the launch and rebranding of Binance Chain and Binance Smart Chain into BNB Chain. Binance asserts that the auto-burn mechanism was devised to optimize the value of the BNB token while offering a sustainable and secure long-term growth strategy for the BNB <a href="https://blockchainreporter.net/glossary/digital-asset-ecosystem/" rel="noopener noreferrer nofollow">ecosystem</a>. Although this goal remains unchanged, Binance has implemented several adjustments to adapt to the evolving landscape. These changes have introduced new processes that expedite the rate at which BNB is burned, in addition to the existing auto-burn mechanism.In November 2021, Binance implemented the Binance Evolution Proposal (BEP) 95, which introduced a real-time burning mechanism to the BNB Chain. This innovative feature enables the smart contract to automatically burn a portion of the gas fees collected by validators from each block, produced on average every three seconds.Binance’s quarterly burns are carried out using the company’s profits and are announced well in advance. The precise amount of BNB to be burned is determined by a combination of factors, such as overall profitability, the circulating supply of BNB, and the number of blocks produced per quarter.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/d4c6cc8edf4a47358c69f81eafd9072c.jpeg" />Binance’s consistent implementation of token burns serves as a model for other platforms, setting the bar high in the rapidly growing crypto industry. The exchange’s commitment to enhancing BNB’s value not only builds trust among existing investors but also attracts potential investors. As of writing, the BNB token trades at $333, gaining over 3.5% in the last 24 hours.

Crypto Exchange Binance Burns over $676M Worth of BNB Tokens in 23rd Quarterly BNB-Burn

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