Once again, Binance conducted the quarterly BNB burn. This time, the burn reached a sum equivalent to USD 60.5 million. This is the largest BNB burn to date in Binance’s history.
What is the BNB burn of Binance?
The BNB burn is a smart contract that Binance has been running since its inception. This Smart Contract ensures that a part of all existing BNBs is burnt every quarter. The aim is to reduce the original 200 million BNB tokens to half. The Smart Contract will automatically expire when the number of BNB tokens has been reduced by half to 100 million BNB.
The 12th BNB burn was completed on 17 July 2020, the 3rd anniversary of Binance. During this period, the crypto exchange has become strongly established in the market and is one of the top exchanges in the crypto sector. This is also the reason for the new record total of 3,477,388 BNB worth 60.5 million US dollars. This sum was not chosen arbitrarily. The Exchange discloses in its white paper that it invests 20% of its profits in the purchase of BNB tokens from the free market. The purchased tokens are then sent to an „eater address“. Since nobody has access to an eater address, these BNBs are thus destroyed.