Binance destroys over 1.68 million BNB tokens in its latest burn

Exchanges • January 17, 2022, 3:20PM EST
The Block

Crypto exchange Binance announced Monday that it has burned over 1.68 million BNB tokens in its 18th burn. The burned tokens are worth nearly $800 million at current prices, but the actual dollar amount of the burn isn't known as Binance recently implemented a new system for its BNB burns.

Until last month, Binance had been burning BNB tokens on a quarterly basis based on revenues it generated during a period. But the exchange recently implemented a new procedure, called BNB Auto-Burn, which burns tokens daily based on the price of BNB and the number of blocks produced during a quarter. The BNB Auto-Burn system takes into consideration the following formula:


B is the amount of BNB to burn. N is the total number of blocks produced on the Binance Smart Chain during the calendar quarter. P is an average price of BNB against the US dollar. K is a constant value as a price anchor, initially set at 1000.

Binance started burning BNB in 2017 after launching the token. At the time, it committed to burning a total of 100 million BNB, i.e., 50% of its total supply. To date, Binance has burned nearly 35 million BNB tokens, according to The Block's Data Dashboard. 

About Author

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on

More by Yogita Khatri