In a move that solidifies its commitment to reducing its total supply, Binance Coin (BNB) has completed its 22nd burn and first quarterly burn of 2023. The burn includes a total of 2,064,494.32 BNB, equivalent to about $617 million. This burn also had 7,181.03 BNB that were burned through the Pioneer Burn Program.
BNB was launched in 2017 with a plan to decrease its total supply by half through a process called “burning.” This plan is carried out automatically each quarter using the Auto-Burn formula and aims to keep only 100 million BNB in circulation. The Auto-Burn process is transparent and auditable, and results are reported quarterly.
The Pioneer Burn Program also removes BNB from circulation based on provable lost funds by eligible BNB Chain users, and this amount is included in the total quarterly burn.
Besides this, the announcement post also reveals that in the last quarter, an incident occurred that affected the BNB burned when 2 million extra BNB were minted due to an exploit. However, 1.02 million were locked and burned, and the rest will be burned through the usual process.
Moreover, despite efforts to migrate to the native BEP2 version, some holders still held onto the ERC20 version, with around 16 million remaining unconverted. Binance.com continues to accept deposits in ERC20 and withdrawals in BEP2, allowing the accumulation of ERC20 on the exchange.
Binance BNB Price Rise
Despite the fact that setbacks like FTX collapse and attention diverts on Binance, drop in values, a number of withdrawals, etc., it appears that investors are slowly beginning to regain confidence in the exchange.
In addition to the recent token burn report, Binance has also made waves with the launch of its new off-exchange custody service. This innovative offering allows institutional investors to access a range of trading and investment products within the Binance ecosystem without the requirement of depositing collateral directly on the exchange.
In addition, it was revealed that the exchange expects to increase its workforce by 15% to 30% in 2023, despite the fact that many of its competitors in the sector are laying off workers, as reported by TronWeekly.
These developments have positively impacted the price of Binance BNB. As per Coinmarketcap, over the past seven days, the BNB has seen a 9.48% increase in value, currently trading at $301.39.