Earlier today, Binance announced the burning of about 2,065,152.42 BNB token. According to a blog post, the cryptocurrency exchange disclosed that the development comes as part of it’s BNB Auto-Burn procedure. Notably, burning process is regarded as 21st quarterly BNB token burn. According to CoinCodex, the value of the token burned worth about $574,800,583.92.
Also, about 4,833.25 BNB became burned through the pioneer Burn Program as part of the quarterly burn. This as well worth about $1,283,179. Recall that the burning program emanated in the closing stage of 2021, which comes as part of Binance’s commitment to improving the value of the token.
The story behind the introduction of the burning program isn’t far-fetched. In 2021, when Binance launched the BNB, the cryptocurrency exchange planned to remove about 100 million of the token from circulation. With the BNB Auto-Burn initiative, Binance can calculate the burned tokens using the Auto-Burn formula. The Auto-Burn formula can go as far as removing half of the total BNB in circulation.
Additionally, the burning program supports the token to maintain a stable value. As a deflationary coin, BNB is designed to offer price stability against the volatility of cryptocurrency. However, the token should not be mistaken for a stablecoin because it’s not pegged to a fiat, and it doesn’t have a reserve. Currently, the token has gone beyond a means of payment for on-chain activity on the BNB chain ecosystem. Different platforms, enterprises and businesses are now using the token is as a means of payment.
Recent upgrade on the BNB smart chain due to recent attack
Recently, Binance announced the deployment of an upgraded version of the BNB smart chain. The development came at the awake of the $100 million exploitation by an hacker last week. As revealed, the upgrade doesn’t haven’t the trading of Binance Smart Chain tokens on the cryptocurrency exchange.
Recall that last week, tension surfaced in the crypto space due to an attack on cross-chain bridge, BSC token hub. Then, the attack compelled validators to suspend the BNB Smart chain. However, a quick intervention from the CEO of Binance, Changpeng Zhao, calmed the situation. Later, it became known that the hacker after a collective effort from firms in the cryptocurrency returned a part of the stolen funds.