Since crypto trading became so popular in 2017, many exchanges decided to launch their own tokens. These could be used to provide discounts for traders by reducing the fees they would have to pay to the exchange.
Binance is one of the leading exchanges in the world for crypto and they have their own Binance coin (BNB). They have just completed their 5th coin burn since this coin was launched. The total supply of the token now sits at around 192.5 million BNB.
Circulating supply is around 117 million, which is an increase of about 5 million compared to a couple of weeks previous. This additional five million came as it was unlocked by the exchange in order to account for differences between CoinMarketCap reported figures and those on Binance. Initially, a discrepancy of 32 million existed, which has now been decreased to 25 million after the coin burn.
This is the 5th event of its kind and follows the schedule laid out in the tokens white paper. The total allocation for this token had been 200 million. Angel investors and the funding team were given 10% and 40% of these to token supply. The remaining 100 million was released through the public initial coin offering (ICO) that took place.
Every quarter, Binance utilizes 20% of profits to rebuy BNB and destroy the tokens. This would happen until 50% of the entire BNB supply has been destroyed. This will leave 100 million BNB tokens in existence.
Naturally due to these coin burns, the shrinking supply will lead to increased value for the BNB token. With Binance expanding across Africa, Europe and Asia, the token is only going to become more popular and more widely adopted. It certainly looks like it is here to stay and it will be interesting to watch its performance going forward into the future.