Following its usual quarterly burn, the Binance (BNB) Chain has successfully eliminated another $620 million worth of BNB from the market.
Crypto exchange platform Binance in its latest news, announced it had successfully destroyed approximately 2.06 million BNB, which is worth about $620 million, at the time.
According to Binance, 7,181 BNB out of the 2.064 BNB burned today came from the company’s Pioneer Burn Program. – a burning program introduced in 2020 that favors those who have lost their digital assets, genuinely.
Binance takes responsibility for the losses in the Pioneer Burn Program by deducting tokens (lost by users through honest mistakes) in the quarterly burn and then refunding the users depending on some conditions.
Flashback On Binance BNB Burn Mechanism
Binance launched the BNB coin in 2017, and ever since, the exchange platform has been committed to burning a large amount of BNB coin every quarter. Initially, Binance started the BNB burn mechanism by buying back BNB coins with 20% of their profit and then destroying it until they bought back and burned 50% of BNB (100MM).
However, in December 2021, the exchange platform introduced a new burning mechanism that relies on automatic on-chain calculations. This means the BNB auto-burn system weighs the amount of BNB to be burnt automatically based on the price of BNB and the number of blocks produced during the quarter.
Furthermore, despite a large amount of BNB coins burnt, one wouldn’t know for sure if the burn has really affected the market since the crypto rally is still on. Meanwhile, at the time of writing, BNB has surpassed the $300 zone and is currently trading at $303, up by over 1% in the last 24 hours and with a trading volume of $696 million over the same period.