BNB just burn 1.5 million tokens

The BNB Foundation announced the execution of its thirty -second quarterly tokens burning, eliminating 1.59 million BNB, valued at approximately 1,000 million dollars according to its current price of $ 670 per unit.

This action reduced the total supply to 139,289,513.94 BNBhaving retired 62,710,505 tokens from the beginning of the program, including 1,579,207 in the burning last April.

This operation is aligned with the BNB Chain strategy to reduce the total offer to reach 100 million tokens.

The burning, now automated, is based on the price of BNB and the amount of blocks generated by quarter, which, according to the foundation, guarantees greater transparency and predictability for the community.

Until the end of 2021, the emission rate was positive, which meant that new BNBs were being added to the supply, as can be seen in the following graph.

However, from 2022, the celestial area crosses the zero axis and becomes negative in most periods. A negative emission rate means that the amount of BNB that is being “burned” (withdrawing from the circulation) is greater than the amount of BNB that is being issued. This actively reduces total cryptocurrency supply.

At several points, the issuance rate has been significantly negative, reaching values ​​of -10% or -20%. This indicates that a considerable amount of the existing supply is being withdrawn every year.

This mechanism, which eliminates more tokens than those emitted, positions BNB as one of the most deflationary cryptoactives in the market.

Therefore, the decrease in the offer can boost the price of the asset. By reducing the available tokens, shortage increases, which, Under the law of supply and demand, it could raise its value if the demand is maintained or grows. This dynamic generates trust among investors and reinforces the perception of exclusivity of BNB in ​​the market.

To better understand this concept, it will be useful to read the article «What factors determine the price of Bitcoin«? (whose content is also applicable to other cryptocurrencies), which is located in the cryptopedia section within the cryptootic portal.