Binance announced on Tuesday that BNB Chain has finished burning over $600 million worth of its native BNB tokens as part of a broader operation.
The burn was carried out on Tuesday morning about 8:00 UTC in transaction 34167E903B9F662A64817266D8A6CE4FE096 68DAD0B883E4F838331E280EEFF, according to the data.
Token burning is the process of permanently removing currency from circulation. The BNB Chain is expected to burn more than 100 million BNB, or half of its total supply, to remove them from circulation and finally leave only 100 million BNB in circulation.
Each quarter, Binance automatically honors its commitment to the burn, which is computed using the Auto-Burn algorithm.
The BNB Auto-Burn offers a technique that can be objectively and independently audited. The method is separate from the Binance centralized exchange, and the numbers are provided on a quarterly basis. BNB Chain still uses a customized technique to burn a portion of its gas fees in real-time.
BNB’s price and the quantity of blocks created on the BNB Smart Chain (BSC) during the quarter are taken into account by the auto-burn mechanism when determining how much BNB should be burned. The native coin of the BNB Beacon Chain and BNB Smart Chain, BNB powers the BNB Chain ecosystem. Binance, a cryptocurrency exchange, released it following an ICO in 2017.
BNB was trading above $300 on Tuesday morning, up modestly from the previous 24 hours. Traders responded favorably to the burn throughout the day.