The twelfth BNB token burn was completed on July 17, 2020, the third anniversary of the Binance crypto exchange. Each quarter, the exchange runs coin-burning events until it eliminates 100 million BNB from circulation, which is half of the total 200 million BNB ever issued.
Burning is aimed at reducing the supply of the BNB token and increasing its value. During its existence, the crypto exchange has been able to establish itself in the market and is one of the leaders in the crypto sector. The new record volume of token burn, 3,477,388 BNB worth $60.5 mln proves the leadership and great performance of the exchange. This amount was not arbitrarily chosen. In its white paper, the exchange says it spends 20% of its profits buying BNB tokens from the free market. The purchased tokens are then sent to the "Eater Address". Since no one has access to the recipient's address, these tokens are destroyed.
Recall that Binance created BNB in 2017 as a utility token that traders can use on the exchange to get discounts on fees or open market trading. The token is now the tenth largest cryptocurrency by market capitalization. At the time of writing, BNB was valued at $18.09, according to CoinMarketCap.
Image courtesy of Binance