Two years ago on October 15, 2017, Binance executed its first BNB burn plan, destroying 966,000 BNB. At the time, the token was priced at just $1, but this strategic move ignited the exchange token market and reshaped the competitive landscape for crypto exchanges over the following two years.
The Relationship Between BNB Burns and Price Trends
Following its 2017 whitepaper, Binance commits to using 20% of its quarterly profits to repurchase and burn BNB. As of July 12 this year, the exchange has completed eight quarterly burns, destroying a total of 12.463 million BNB (worth approximately $160 million).
Each burn event draws significant attention, as the repurchase amount reveals Binance’s quarterly profits (Profit = Burn Amount / 20%), offering insights into the earnings of this self-proclaimed "world’s top exchange."
Historical BNB Burn Data
| Burn Date | BNB Burned | BNB Price | Quarterly Profit |
|---|---|---|---|
| Oct 15, 2017 | 986K | $1.01 | $5M |
| Jan 15, 2018 | 1.821M | $19.34 | $186M |
| Apr 15, 2018 | 2.22M | $13.10 | $129M |
| Jul 15, 2018 | 2.528M | $12.86 | $152M |
| Oct 15, 2018 | 1.643M | $10.23 | $86.8M |
| Jan 15, 2019 | 1.623M | $6.09 | $47.1M |
| Apr 15, 2019 | 829K | $19.64 | $78.85M |
| Jul 15, 2019 | 808K | $31.89 | $119M |
👉 Why BNB Burns Matter for Crypto Investors
Speculating on the Ninth Burn
Today marks October 15—the anticipated release of BNB’s ninth burn data. Key questions arise:
- Will Binance’s Q3 profits surpass last quarter’s $119 million?
- How will this announcement impact BNB’s price within the next 24 hours?
FAQ Section
Q: How does Binance’s burn mechanism work?
A: Binance allocates 20% of its quarterly profits to buy back and permanently remove BNB from circulation, reducing supply and increasing scarcity.
Q: Why do BNB burns attract so much attention?
A: Burns serve as a transparency tool, allowing the market to estimate Binance’s profitability while reinforcing confidence in BNB’s long-term value.
Q: How does BNB’s price typically react to burn events?
A: Historical data shows mixed effects—sometimes short-term spikes, but always heightened trading activity around announcement dates.
👉 Mastering Crypto Tokenomics: A Beginner’s Guide
Key Takeaways
- Binance’s BNB burn strategy remains a cornerstone of its tokenomics.
- Tracking burns provides a proxy for exchange profitability and market sentiment.
- The ninth burn could set new benchmarks for crypto exchange earnings in 2023.
Note: All figures are based on historical data; always conduct independent research before investing.