Binance burns 2 million BNB worth about $674 million

Binance has burned over 2 million BNB tokens during its 23rd quarterly burn, removing about $674 million worth of BNB from circulation.

In the past, Binance used to burn a percentage of the exchange's revenue. Yet that changed as it distanced itself somewhat from the token over the years, with its rebranding from Binance Coin to "Build and Build" as a recent sign of that. Now it's done based on price and supply-demand dynamics, according to the firm.

The BNB Auto-Burn uses the following formula to generate the amount, where "B" is the BNB being burned, "N" is the total number of blocks produced in the quarter, and "P" is the average price of BNB. 

The vast majority of the burned tokens were linked to the exchange's "Auto-Burn" function.  If the price falls, the number of tokens burned increases.

Price movement following the burn

BNB is up about 3.3% over the past 24 hours, according to CoinGecko dat, with some price movement following the token burn announcement.

The token price has now fully recovered following a dip in March when the Commodity Futures Trading Commission (CFTC) sued the exchange and its CEO, Changpeng Zhao. The regulator alleged Binance and its chief violated federal laws and didn't register the exchange in the U.S.

BNB dropped on the news at the time but is trading back above $330 less than three weeks later.