- Binance has announced a “significant” token burn.
- The burn will involve tokens across various chains.
- The development comes after the exchange recently burned 2.1 million BNB tokens.
The world’s largest crypto exchange by trading volume, Binance, will carry out a “significant” multi-chain token burn today, according to an announcement by the company on Monday.
“Token burning” is a mechanism employed by crypto projects to permanently eliminate a specific number of tokens from the existing circulating token supply. This is achieved by sending the tokens to a “burn address,” where they are locked up for eternity, preventing anyone from accessing them.
Binance Issues Key Burn Update
In a Twitter (X) post dated January 22, Binance said it would “burn a significant amount of Binance-pegged tokens on various chains” to bolster their underlying ecosystems.
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While the announcement did not reveal details of the burn, including the types of tokens that would undergo the “deflationary” event, Binance clarified that “The equivalent amount of these tokens on their native networks, which were used as collateral, will then be released.”
Over the past few years, the exchange has directly burned some of the industry’s popular tokens, including its native digital asset, Binance Coin (BNB).
On January 17, Binance conducted its 26th quarterly burn, which removed 2,141,487 BNB tokens from circulation. At the time of the burn, these tokens were estimated to be worth over $600 million.
At the start of the year, the exchange burned 3,903,522,969.89 LUNC tokens, representing one-month trading fees on LUNC spot and margin trading pairs. The LUNC tokens burned at the time amounted to a USDT equivalent of 362,617.17.
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