What is the burning mechanism of Binance coin (BNB) and how does it affect its price?

3 answers

• Nov 29, 2021 · 3 years ago
  Sure! The burning mechanism of Binance coin (BNB) involves the periodic destruction of a portion of the coins in circulation. Binance uses 20% of its quarterly profits to buy back and burn BNB tokens. This process reduces the total supply of BNB, leading to a decrease in the circulating supply. As the supply decreases, the demand for BNB may increase, which can potentially drive up its price.
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• Nov 29, 2021 · 3 years ago
  The burning mechanism of Binance coin (BNB) is a deflationary measure implemented by Binance to increase the scarcity and value of the coin. By regularly burning a portion of the coins, Binance aims to create a supply-demand imbalance that can potentially drive up the price of BNB. This mechanism also rewards long-term holders of BNB, as the reduction in supply can lead to price appreciation.
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• Nov 29, 2021 · 3 years ago
  BYDFi, another popular cryptocurrency exchange, also implements a burning mechanism for its native token. Similar to Binance, BYDFi periodically buys back and burns a portion of its token supply. This burning mechanism helps to maintain a healthy token economy by reducing the supply and potentially increasing the price of the token. However, the impact of the burning mechanism on the price of BYDFi's token may vary depending on market conditions and investor sentiment.
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