The highest quarterly token burn to date has been done by the leading exchange.
According to CEO Changpeng Zhao, Binance has completed its 14th quarterly Binance Coin (BNB) incineration.
Burns Will Ramp Up
3,619,888 Binance Coins (BNB) were burnt in total, a sum worth $165.8 million. That makes this the biggest burn for Binance to date. The overall supply of BNB fell from BNB 174.2 million to BNB 170.5 million in the wake of the burn.
This burn also leads to a quicker burn rate at the outset. Binance would only require 5 to 8 years to fulfill this objective at the current burn rate, however the rate will adjust in the future. The downside to this rapid burn is that to calculate Binance’s sales, users won’t be able to use the burn figure.
Under the previous burn rate, it would have taken 27 years for Binance to achieve its target of burning half the supply of BNB and taking the overall supply down to BNB 100 million.
Tokens will be unlocked too
Zhao also reported that 16 million BNB tokens have been unlocked by Binance. In July 2020, these tokens were expected to be unlocked and transferred into the team allocation address of Binance, but the team failed to do so.
Zhao added that not a single token has been sold or transferred at any point from the team distribution. Zhao said the tokens were unfrozen, transferred to publicly accessible addresses, and never went past that, other than being burnt.
The unlocked tokens are likely to be lost by a potential fire.
In July 2019, Binance initially revealed plans to burn the entire allocation of teams. The decision is intended to convince consumers that Binance seeks to improve, not just benefit from, the utility of BNB.