Binance exchange will include all future businesses and products into the scope of each quarterly burn of its native token Binance Coin (BNB).
Decision made based on community feedback
According to a blog post on Sept. 12, Binance has decided to include all its products into quarterly BNB burns in accordance with community feedback.
The new BNB burning practice will include tokens from Binance Futures, the exchange’s crypto futures platform that was rolled out in beta mode on Sept. 2, featuring a 10,000 BNB trading contest. Earlier today, Binance announced that Binance Futures will officially go live on Sept. 13.
Why tokens are burned?
Token burning is a permanent removal of existing cryptocurrency coins from circulation by the coin’s creators that is commonly practiced for deflationary purposes.
As reported, token burning does not literally destroy them but rather renders them unusable in the future, involving the project’s developers repurchasing or taking available coins out of circulation.
Most recent BNB burn
The most recent Binance’s token burn took place on July 11, when the major crypto exchange announced the completion of the eighth BNB token burn that removed 808,888 BNB tokens ($23.7 million at the time) from Binance’s team allocation.
The exchange noted that the burn was part of the company’s commitment to burn a total of 100 million BNB tokens and that the team’s supply equates to 40% of the total supply.
As reported by CryptoNewspeople, BNB slipped 5% on the day the burn was completed.
In February 2019, Binance updated its white paper’s section devoted to quarterly BNB manipulations, upgrading its former “Repurchasing plan” with “The Burn” section.
The exchange explained that it will be destroying BNB based on the trading volume until it destroys 50% of all the BNB instead of buying back BNB each quarter, using 20% of their profits and then destroying them until the exchange buys 50% of all 100 million BNB back.
At press time, Binance Coin is the eighth biggest cryptocurrency by market share of around $204 million. BNB is down 4.7% over the past 24 hours, also seeing a 6.3% loss over the past 7 days at press time, according to data from Coin360.