On the occasion of its 25th quarterly burn, Binance destroyed more than 2 million BNB tokens. Let’s take a look at this operation, which represents the burn of $453.5 million.
Binance announces its 25th quarterly BNB burn
As usual, cryptocurrency exchange Binance proceeded this morning with its 25th quarterly BNB token burn. This operation represents the destruction of just over $453.5 million, or 1.38% of BNB’s total capitalization.
– Binance (@binance) October 16, 2023
In this case, exactly 2,138,868.29 were destroyed, as shown in the transaction below:
In order to determine the quantity promised to be destroyed, several parameters enter into the formula. The number of blocks produced during the period in question is multiplied by 1,000. This is then divided by the average price of BNB over the said period, plus a constant currently set at 1,000.
For this 25th burn, the calculation was: (2,640,800 x 1,000) ÷ (234.49 + 1,000).
By way of comparison, 2.18 million BNB had been destroyed the previous quarter, representing $460.68 million. On the other hand, the BNB Auto-Burn must continue every quarter, as long as the total quantity of tokens remains above 100 million. To date, this figure stands at just over 153.85 million.
At the time of writing, BNB was trading at $213.16 each, up 2.9% over the last 24 hours.