Historic record: Binance burns $165 million of BNB
- Binance has completed its 14th BNB burn, valued at over $165 million.
- In this process the BNB asset is essentially destroyed while reducing supply.
- This is BNB’s largest BNB burn to date.
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Binance, the world’s largest crypto-currency exchange platform, recently completed its quarterly combustion of its native crypto-currency, the BNB.
Each quarter, Binance „burns“ a part of its BNB according to the number of fees generated. The platform essentially redistributes these fees to the Bitcoin Machine cryptocurrency holders and withdraws these NBBs from the market forever.
As Bitcoin regularly reaches unprecedented highs and Ethereum has just climbed to a record level, interest in the crypto-money space is increasing. This can be seen in the increasing use of the Binance trading platform.
This growth corresponds to Binance’s largest ever combustion of crypto-currency. The company has burned more than 165 million BNB dollars. With this latest acquisition, the outstanding offer decreased by more than 3.5 million.
cz_binance shares his plans to significantly increase the speed of burning #BNB, along with his 2021 crypto forecast and more!
– Binance (@binance) January 19, 2021
Binance: pioneer of accelerated combustion of BNB
The Binance team has committed to burn BNB 100 million, half of the total supply of BNB tokens. To date, Binance has purchased approximately 13%, currently valued at approximately $426.3 million.
Noting that at this rate, it would take almost three decades to burn up all BNB assets. The company has decided to speed things up a bit. It has not specified how fast it intends to continue, but its current trajectory is five to eight years. It uses a metric previously based on Binance’s trading volumes.
At the current NBB price, the total value of the 100 million wedges bought back would be equivalent to just over $4 billion, the amount that will have been re-injected into the NBB ecosystem.
The reduction in supply should theoretically lead to a further increase in the NBB price.
The NBB ecosystem
Binance designed the NBB to provide value to its holders. The company does this in a variety of ways. In addition to quarterly token burns, which inject funds directly into the BNB ecosystem, Binance offers its token holders the opportunity to save on transaction fees, generating an automatic discount on the exchange.
Depending on the amount of BNB a user holds, they receive higher savings per transaction. The amount ends up being significant if you are a professional trader or buy/sell frequently.
The company has also partnered with various resellers and services, creating a path to the use of NBB in the real world. With more use cases presented, the NBB could become a more popular crypto-currency.