Binance destroys over 1.68 million BNB tokens in its latest burn
Crypto exchange Binance announced Monday that it has burned over 1.68 million BNB tokens in its 18th burn. The burned tokens are worth nearly $800 million at current prices, but the actual dollar amount of the burn isn't known as Binance recently implemented a new system for its BNB burns.
Until last month, Binance had been burning BNB tokens on a quarterly basis based on revenues it generated during a period. But the exchange recently implemented a new procedure, called BNB Auto-Burn, which burns tokens daily based on the price of BNB and the number of blocks produced during a quarter. The BNB Auto-Burn system takes into consideration the following formula:
B is the amount of BNB to burn. N is the total number of blocks produced on the Binance Smart Chain during the calendar quarter. P is an average price of BNB against the US dollar. K is a constant value as a price anchor, initially set at 1000.
Binance started burning BNB in 2017 after launching the token. At the time, it committed to burning a total of 100 million BNB, i.e., 50% of its total supply. To date, Binance has burned nearly 35 million BNB tokens, according to The Block's Data Dashboard.
