Binance to Conduct Its 4th Token Burn in Accordance with Its White Paper

Binance is set to conduct its fourth quarterly token burn in compliance with its own white paper. This particular practice involves the company buying its own cryptocurrency (BNB) and removing it from its overall token supply that is currently in circulation.

The amount that is to be burned is equivalent to Binance’s 20 percent profit, which it will use to buy BNB at market value. This practice will persist until 50 percent of BNB has been taken out of circulation, which is about 100 million tokens, NewsBTC reported.

Binance’s last token burn was conducted on April 15, with the company burning more than 2 million BNB or 1 percent of the overall coin supply of the crypto exchange firm. The first token burn by Binance took place on Oct. 18, 2017, when the exchange took out 986,000 BNB from its circulating supply. The second one occurred in January 2018, when a substantial 1,821,586 BNB was burned.

Binance CEO Changpeng Zhao announced the burning via Twitter. This event has been quite popular among the crypto community, with users buying BNB for the eventual removal.

“Binance is doing a final tally on the numbers, and will announce our 4th quarterly burn in the next day or so, and finish the burn within a couple days after that,” Zhao wrote. “Thank you for your patience and support!”

If the previous trend persists, the valuation of BNB will likely increase following this burning as the cryptocurrency tends to be bullish after completion of this process. Also, the crypto exchange company is set to celebrate its first anniversary this month.

Since the founding of Binance, the company has experienced tremendous growth despite bear market dominating the crypto industry this year. The exchange is projecting a $500 million to $1 billion in profits by the end of the year even though it saw major hurdles in 2018, such as hackers exploiting one of the company’s cryptocurrency listings, Syscoin.