Popular crypto exchange Binance completed on Saturday its 11th quarterly burning of BNB tokens.
The trading platform burned around $52.5M in BNB tokens during the first quarter of 2020, a figure which is a 35.2% higher than the $38.8M burned during the last quarter of 2019.
It must be noted this is the largest token BNB burning in history, both in terms of dollars and BNBs. Thus, the exchange has burned a total of 20.12 million BNB tokens (around $298M) in in 11 burnings, which represents about 10.1% of all BNBs in circulation (200 million).
BNB token burns are based on self-reported volumes and not on profits.
Token burning is a common practice in the crypto industry. It is a deliberate action by the makers of the currency aimed at removing a specific number of coins from circulation. This may be due to several reasons, although it is mainly carried out in order to reduce inflation.
According to Binance, BNB is a cryptocurrency (token) created by the exchange back in 2017. It was first issued and launched during an Initial Coin Offering (ICO) crowdfunding event, which took place between June 26 and July 3. BNB was initially issued as an ERC-20 token (on the Ethereum platform). The initial total supply of BNB was defined as 200,000,000 coins, but due to the regular coin burning events like this one, the supply is gradually decreasing.
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