Crypto exchange Binance announced Friday that it has burned over 1 million BNB tokens, worth about $595 million, in its latest quarterly burn.
This 15th quarterly BNB burn is the highest one ever carried out by the exchange in dollar terms. This is because the price of BNB jumped more than 16 times during the quarter, from around $35 to around $600.
"Burning" refers to the process of permanently removing a crypto token from circulation. When Binance launched BNB in 2017, it committed to burning a total of 100 million BNB, which is half of its supply.
Reduced supply of a thing tends to increase its price and benefits its owners. In this case, Binance and BNB holders.
To date, Binance has burned 15.3% of its total BNB supply of 200 million tokens, according to The Block Research. About 35% of tokens are yet to be burned in the coming quarters and years.
Binance burns BNB each quarter based on its trading volumes of the previous quarter.