1.8 million Binance tokens (BNB) are burned by Binance.
Binance tokens (BNB)
The Binance Smart Chain (BSC) blockchain is powered by the Binance exchange Token (BNB). BNB coins are also required to take part in BSC’s on-chain governance. Binance launched a new BNB auto-burn method last year in response to community criticism in order to create a healthy BSC ecosystem. Binance had two BNB burn mechanisms before this release. For starters, a percentage of the fees paid to BSC is burned in real-time. Binance also performs a quarterly BNB burn.
Why Binance tokens are burned
Binance changed the quarterly burn with a BNB auto-burn plan in December 2021, giving the BNB ecosystem more predictability. As a result, in the first quarter of 2022, Binance burned approximately 1.8 million Binance tokens coins. Market participants expect scarcity to come in as a result of the burn mechanism’s deflationary character, driving up the price of BNB in the future.