Binance Burns $547 Million Worth of BNB

The largest crypto exchange in the world by trading volume, Binance has just burned $547 million worth of its native exchange token BNB from its supply, the world's largest crypto exchange in the world by trading volume. In the announcement of the burn Binance stated it had burned roughly 2,065,152 BNB tokens, worth just under $600 million as of today.

In the same statement, the exchange confirmed another 4,833.25 BNB was burned through the Pioneer Burn Program, an application in which users can get help to recover funds lost due to accidents.

The program returns lost funds to users, with BinaCAnce covering the losses, on a special case-by-case basis. Those coins are then taken from the quarterly burn.

In the past, Binance committed to burning 20% of its profits per quarter; in the last burn, it is estimated that the exchange could have netted a profit of $2.7 billion during the third quarter of 2022.

This last burning was the company's 21st and is also the largest to date in terms of dollar amounts; the last burn to come close was in 2021, when under $600 million worth of BNB was burned.

In the face of the burning, the process does not seem to have any impact on Binance Coins markets movement, as BNB moves slowly down, not unlike the rest of the crypto industry.

The exchange was in the news last week due to the announcement that it would help tTerra Luna Classic investors, the forked version of the formerly named Terra (LUNA), by burning the LUNC trading fees collected on its LUNC/BUSD and LUNC/USDT spot and margin pairs. The exchange announcing that the first burn had destroyed roughly $1.8 million worth of LUNC tokens.

Token burnings, while frightful sounding at first, are a mechanism that is pivotal to the continued life of cryptocurrencies as it allows token makers to regulate a currency's flow easily.