Binance burns BNB tokens like hackers do out of thin air

Today, Binance completed the 21st quarterly BNB burning process iconsEffectively offsetting the losses from last week’s bridge breach.

BNB is the original cryptocurrency of the BNB chain, formerly known as Smart Binance SeriesAnd he’s a competitor Ethereum. “Burning” occurs when tokens are permanently removed from the cryptocurrency supply, usually as a measure of inflation. Today’s burning removed 206,5152.42 BNB, worth over $549 million at current prices, from the market.

By comparison, a use From the BNB Chain Bridge last week, the attacker gave out exactly 2,000,000 BNB, conjured out of thin air using artificial proof of withdrawal. The net worth of the stolen BNB was approximately $566 million at the time.

The majority of these coins were lost to the hacker when BSC chain validators froze the network after the attack. The network has since implemented a hard fork To repair some damage, but the hacker managed to transfer about $100 million in funds to other chains.

While technically no user lost money during the hack, minting new coins is a no-go for BNB, which is supposed to be a deflationary token. This is accomplished through Binance’s quarterly BNB buybacks, as well as an on-chain feature that burns a portion of the BNB transaction fees in real time.

The quarterly burn was previously based on Binance’s earnings from BNB trades on the exchange, but it has since changed to the “auto-burn” model. The formula calculates how much BNB to burn based on the number of BNB chain blocks in that quarter and the BNB price. Generally speaking, the higher the coin price at any given time, the more BNB will be burned each quarter.

Binance previous burn In July, 1.96 million tokens, worth $444.6 million at the time, were burned.

Binance also helps to burn Classic Luna Symbols (LUNC) using roughly the same method as the previous quarterly transcription model. He takes the fees collected from LUNC transactions and uses them to buy back tokens from the market.

Binance’s periodic burns will stop when BNB supply reaches below 100,000,000 tokensLess than 50% of the initial offer to launch the token.

Stay up to date with cryptocurrency news, and get daily updates in your inbox.

Leave a Reply

Your email address will not be published. Required fields are marked *