Binance Burns 2M Coins Worth $547M of BNB Tokens

• More than 2 million coins are removed from Binance’s supply, this is $547 million in terms of USD value.
• The burning mechanism seems to have little or no impact with BNB prices moving slowly downward along with the rest of the crypto market.

Binance, the world’s largest cryptocurrency exchange platform, has concluded its 21st quarterly BNB burn. The burn saw more than 2 million BNB tokens removed from circulation, which is equivalent to $547 million in USD value.

The purpose of Binance’s BNB burning mechanism is to reduce the total supply of BNB tokens from 200 million to 100 million. The company has made multiple changes to its burning mechanism over the years, as the original idea of burning a percentage of profits each quarter was not fast enough.

In the 21st quarterly burn, Binance burned 2,065,152 BNB tokens, which is worth just under $600 million at the time of writing. The exchange company also burned an additional 4,833.25 BNB tokens through its Pioneer Burn Program. This program helps users who lost possession of their digital assets through honest mistakes. Binance covers the losses and returns the tokens to the rightful owners, depending on specific conditions. The tokens are then deducted from the total quarterly burn by Binance.

Binance had previously committed to burning 20% of its profits for each quarter. According to the last burn, the company could have profited by $2.7 billion during the third quarter of 2022.

The 21st quarterly BNB burn is one of the biggest amounts burned in BNB burn history in terms of its fiat value. Back in 2021, around $600 million in BNB was burned, marking the largest BNB burn record.

Despite the massive amount burned, the burning efforts don’t seem to have a huge impact on the Binance Coin markets at the moment, with BNB prices moving slowly downward along with the rest of the crypto market.

On October 3, Binance announced that it would be burning LUNC trading fees collected on its LUNC/BUSD and LUNC/USDT spot and margin pairs. In the initial burn, around $1.8 million worth of LUNC tokens were burned.

The burning of BNB and LUNC tokens is a way for Binance to show its commitment to the long-term health of the cryptocurrency markets. It is also a way to reduce the supply of these tokens, which can help to increase their value in the future.