Binance Burns Over $575 Million Worth of BNB in 22nd Quarterly Burn

Binance completes 22nd quarterly BNB burn, removing 2.06 million tokens worth over $575 million.

Cryptocurrency exchange Binance conducted its 22nd quarterly burn of Binance Coin (BNB). 2.06 million tokens were removed from circulation, worth more than $575 million.

The 22nd quarterly $BNB token burn has been completed through #BNB Auto-Burn.

Here’s everything you need to know about the first quarterly burn of 2023 and some words from @cz_binance ⬇️https://t.co/sIrWpnUxIL

— Binance (@binance) January 17, 2023

In 2017 the company launched a burn program aimed at removing 100 million tokens — half of the total supply. Since 2021, the number of tokens removed from circulation is automatically calculated by the Auto-Burn formula.

“BNB Auto-Burn provides an objective and independent verification process. The figures are reported quarterly, and this mechanism does not depend on Binance. In addition, BNB Chain continues to burn part of the gas fees in real time, using the Real-Time-Burn mechanism,” — said in a statement by Binance CEO Changpeng Zhao.

Of the total coins removed from circulation during the quarter, 7,181 BNB were attributed to the Pioneer Burn program. Since launch through the BEP-95 update activation, the mechanism has burned more than 145,000 BNB.

Zhao noted that during the reporting period there was a token-burn related incident. As a result of a hack on October 7, 2022, the cross-chain bridge BSC Token Hub was additionally issued around 2 million BNB, increasing the total supply. However, 1.02 BNB were locked by validators’ decision and then burned. The remaining unissued coins will be burned via standard mechanisms.

According to the head of Binance, the migration of BNB from the ERC-20 standard to the native BEP-2 is ongoing. After the platform ceased moving coins on the ERC-20 protocol, the process accelerated. As a result, the exchange accumulated most of the total supply of 16 million such tokens. They will be burned, and an equivalent amount of BNB (BEP-2) will be issued, Zhao added.

“Having completed the first burn of 2023, we move to the rest of the year and its opportunities. Looking at the state of the market, I hope and expect that the industry will continue to build in the long term and be on the path to recovery,” — said Binance founder Changpeng Zhao.

In January, Zhao announced the continuation of the exchange’s staffing expansion in 2023 by 15-30%.

In the previous quarterly burn, Binance also removed from circulation about 2.06 million BNB, which at the time was worth $547 million.

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