- Binance wants to quicken its BNB burn program
- The exchange has already burnt over 20 million of its native token
The Chief Executive Officer of Binance, Changpeng Zhao, has disclosed that the team at the crypto firm is currently discussing the possibility of destroying the crypto exchange’s utility token, Binance Coin(BNB), at a faster rate. This is aimed towards reducing the coin’s overall supply volume.
The crypto firm had completed 13 burns of its crypto asset. Earlier in October, the firm had torched over 2 million BNB tokens that were worth $68 million. This was the highest value that the crypto firm had ever burnt in one full swoop.
Binance does this burning every quarter. And its goal is to burn half of the 200 million BNB it had issued. This would equate to burning 100 million BNB from circulation.
The number of tokens to be burnt during every quarter was always determined by the number of transactions that was performed on the exchange. The firm does this burning so as to increase the value of the available token.
Binance has been able to burn over 23 million of its native token which equates to 24% of the total number of token it plans to burn.
BNB was launched in 2017 as the native token of the exchange and since then, it has grown to become the ninth largest crypto asset in the industry by market cap.
Binance could earn as high as $1 billion this year
In a recent interview with Bloomberg, Zhang, has said that his crypto firm could earn between $800 million and $1 billion. This is due to the uncertainty that is attached to the market that drives the interest and trading volume of the industry.
The value of Bitcoin has risen massively this year setting a new all time high. Due to this rise, activities in the exchange has also increased exponentially as well.