6,296 burnt tokens modified from BNB Pioneer Burn
The eighteenth quarterly burn of Binance’s original BNB coins saw the largest amount of tokens cleared from the network. According to market data, major exchanges yesterday announced a total reduction of 1,684,387.11 BNB from distribution. That was about $798,079,000 at the time of writing.
By comparison, the 17th burning in October cleared 1,335,888 BNB, which was worth $639,462,868 at the time of the burn, and the 15th torch over 3 million tokens equaled the dollars cleared. Did not reach 600 million dollars.
Among the burnt tokens, 6,296.305493 were tokens deleted via the BNB Pioneer Burn program. This program is a Binance initiative to cover customer losses if tokens are accidentally sent to a dead wallet. Tokens used to compensate the user’s loss are counted as part of the write.
The emergence of the automatic writing mechanism
The 18th quarterly combustion is also the first time Binance has implemented the spontaneous combustion mechanism. Last month, the exchange introduced an automatic BNB writing mechanism to replace the quarterly writing method.
Binance explained that the new method provided users with better predictability and transparency. Furthermore, this mechanism is independent of the revenue generated by BNB on Binance Central Exchanges.
“Implementing an automated BNB write is a natural next step in the BNB journey, helping the BNB community grow by providing greater independence, transparency, and predictability.” Zhao said.
Burning sends the tokens to inaccessible wallets, effectively removing them from circulation within the network. Binance has been burning tokens since launching BNB tokens for three years. At the time, the exchange promised to burn 50% of the total BNB supply to reach 100 million tokens.
Binance Coin Still A Deflationary Token
Alongside the news, Binance CEO Changpeng Zhao tweeted to the user, reminding the user that BNB is a deflation token.
“The equivalent of US$729 million has been burned. BNB is deflation.” the position read.
Burning tokens is a contraction because it perfectly brings value to the tokens. The expected increase in value comes from the idea that a decrease in the supply of tokens is counteracting this inflation.
However, even though the announcement was expected to push up the price of BNB, it continues to fall. BNB is trading at $469.45, down 3.14% from Monday press time.