According to crypto disclosure platform Xangle, Binance, the third largest exchange in terms of liquidity, has completed a token burn of 2,216,888 BNB, worth around $3.9 million USD.
This token burn is said to be the second biggest in terms of USD fiat value and the third biggest in terms of token quantity. Analysts claim that this can be recognized as an increase in Binance’s overall trading volume, as the token burn is tied in proportion to Binance’s 3-month trading volume (automated by smart contract(s)).
According to Cointelegraph, Binance is said to use 20% of its profits to cover the costs of the burn, a simliar approach to how companies pay dividendes in the traditional equity market. The effective reduction of total token supply can be compared to a treasury stock buyback.
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