The world’s largest cryptocurrency exchange Binance has carried out its latest quarterly burn of its native BNB tokens, effectively taking $68mln worth of tokens out of the ecosystem.
Binance confirmed the latest token burn in a blog post on its website. It is the 13th quarterly token burn that Binance has carried out.
A total of 2,253,888 BNB tokens were burned which included 867 BNB tokens that were effectively lost by a user in a transaction to a smart contract that cannot be recovered. These tokens were worth around $20000 and were burned as part of the Binance Pioneer Burn Program – a feature that allows early DeFi users on the Binance Smart Chain to burn tokens after ‘honest mistakes in transferring tokens’.
The total value of the burn was worth around $68mln and has removed these BNB tokens from the Binance Smart Chain ecosystem forever. This was also an increase from its previous BNB token burn.
This latest burn is the biggest Binance has carried out in terms of fiat value, while its the fourth highest amount of BNB tokens burned in one instance.
CZ shares latest thoughts on DeFi
The rest of the post shared the thoughts of Binance founder and CEO Changpeng Zhao (CZ), with a large section focused on the biggest talking point in the sector this year – Decentralized Finance (DeFi).
CZ highlighted his belief that DeFi has helped drive the growth of the cryptocurrency space in 2020 and could have made prices ‘more resilient to negative news and FUD’ due to the sheer amount of value being locked in liquidity pools.
The Binance founder also highlighted the need for investors and crypto users to be vigilant and careful with their digital assets, pointing to the prevalence of DeFi project bubbles, rug pulls and stepp price corrections.
CZ also stated that a number of core features that have underpinned the success of various DeFi projects will become established products. This includes liquidity pools, automated market makers and on-chain loans. Interestingly CZ said that high APY yields may not be a long time occurrence in the DeFi space, as hype dies down.
“In the long run, I believe DeFi will be the future, ie, overtaking CEX (centralized exchanges). But it won’t happen just yet, for a number of reasons. While the TVL (total value locked) on DeFi is high, the number of active users is still low. Not to mention, 99.9% of the world’s wealth is still in fiat, and we still need CEX fiat bridges to bring them into the crypto world (more on this later). And if we want true adoption, 99% of the mass population – the average users – are not technical enough to securely hold their own private keys given the tools we have today. More tooling needs to be built. And CEX is still easier to use for the majority of people, for now.”
In the same breathe, CZ insisted that he wants to see the entire cryptocurrency community move to a truly decentralized environment, with Binance trying to work towards that goal.
“Even as one of the largest CEX in the world today, we view our CEX as a transient product. The future world will be decentralized, and we want to accelerate the pace of change. In fact, I personally am eagerly waiting for that day to come. I long for the day when we no longer need to hold custody of users’ assets, and become just a contributing member of a decentralized financial ecosystem.”