Binance “burned” over $ 393 million of BNB tokens

The trading platform uses 20% of its profits to withdraw its own tokens from circulation. This will continue until only 50% of the total altcoin emission remains.

Cryptocurrency exchange Binance announced the burning of over $ 393 million of Binance Coin tokens.

This amount includes 5163 BNB ($ 1.5 million), which were withdrawn from circulation as part of support for users who mistakenly lost their coins by sending to a non existent address.

These funds were returned to the victims, and then the same number of coins were burned to keep the emission at the same level.

Each quarter, Binance uses 20% of its profits to repurchase and burn Binance Coin tokens.

This will continue until the altcoin emission is reduced by 50%, to 100 million BNB. According to Coinmarketcap, there are 168 million BNB in ​​circulation at the moment, worth $ 50.7 billion.

The burning of tokens is the destruction of a certain number of them to reduce their emission.

This method is used to combat inflation and increase the value of Cryptocurrency.

All token burn operations are recorded on the blockchain as a transaction. Therefore, anyone can verify that the coins have been destroyed.

In mid-May, Ethereum co founder Vitalik Buterin burned 90% of the Shiba Inu tokens that were stored in his wallet by sending them to a non existent address.

In total, Buterin destroyed coins worth $ 6.5 billion. Against the background of the burning, the price of the altcoin rose sharply by 36%.