Binance Announces Major Token Burn Across Multiple Blockchains

On January 22, Binance will burn a “significant amount” of exchange-related cryptocurrencies across various blockchains.

Today #Binance will burn a significant amount of Binance-pegged tokens on various chains.

The equivalent amount of these tokens on their native networks, which were used as collateral, will then be released.

— Binance (@binance) January 22, 2024

“The equivalent amount of these tokens on their native networks, which were used as collateral, will then be released,” the company explained.

Binance did not disclose the names of the digital assets or the exact timing of the burn.

When asked by a user whether the announced initiative would increase the total supply of BNB, exchange representatives replied:

“BNB was initially issued as an ERC-20 token (on the Ethereum platform), but has since been moved to the main BNB Chain. The initial total supply was set at 200,000,000 coins, but due to regular burning, the supply is gradually decreasing.”

In 2017, the company launched a burn program aiming to remove 100 million BNB from circulation—half of the total issuance. Since 2021, the number of coins removed is automatically calculated using the Auto-Burn formula.

On January 17, Binance conducted its 26th BNB burn, removing 2.1 million coins (1.41% of the issuance) worth approximately $636 million at the time.

Binance also plays a key role in the destruction of Terra Classic (LUNC), aimed at supporting the price of the collapsed coin. The mechanism involves burning fees from spot and margin trading in LUNC/BUSD and LUNC/USDT pairs.

At the end of 2023, the community of the decentralized exchange PancakeSwap supported a proposal to reduce the issuance of its native token by 300 million CAKE.

On December 26, the platform burned 10 million CAKE worth $34 million. Following this, the token surged by 25%.