Binance, the leading cryptocurrency exchange, has just announced its latest quarterly $BNB token burn. Over 2.06 million tokens were destroyed, worth a combined $600 million.
This comes as part of Binance’s mechanism to help reduce the cryptocurrency’s supply from 200 million to 100 million over time.
The burn included 7,181.03 tokens from Binance’s Pioneer Burn Program, in which Binance compensates users for tokens sent to unrecoverable addresses. Additionally, 2,057,313.29 BNB were burned through the auto-burn system.
In October 2021, BNB Chain, the native network of the $BNB token, introduced the BEP-95 protocol, which adds an additional deflationary aspect by burning a fixed ratio of each block’s gas fees that validators collect.
Since then, 145,000 tokens have been burned through this mechanism. Unfortunately, an incident occurred in the last quarter where an exploit of the BSC Token Hub bridge led to the creation of “roughly two million BNB.”
The validators managed to burn 1.02 million of those tokens quickly, while the remaining tokens are set to be burned through the burning processes described above.