BNB Coins in ERC20 Burning and Converting to BEP2
Changpeng Zhao, CEO of Binance, the world’s largest cryptocurrency exchange in terms of volume, said in his statement that they carried out large amounts of BNB transfers and burns. Zhao stated that there is no need to make FUD regarding the transactions. Zhao tried to prevent a spread of FUD by giving advance notice of these large transactions. Zhao stated that the Binance team is burning BNB tokens on the ERC20 network and converting them to the BEP2 network.
Binance has tended to switch BNB tokens on the Ethereum network to the BEP2 version since launching their own blockchain. According to the transfers, there are still some BNB coins in the ERC20 version. In its statement, the exchange stated that the portion of these coins held on Binance will be automatically converted to the BEP2 network. Currently, there are 16 million ERC20 BNB coins.
In addition, the first BNB burning of the first quarter of 2023 was carried out. The figures in this burn do not include coin burns for the transition from the ERC20 network to the BEP2 network. According to the information shared by the company, 2.06 million BNB, with a total value of approximately $575 million, was burned. When BNB was launched in 2017, a commitment was made that 100 million BNB (half of the total supply) would be removed from circulation in a burn process, ultimately keeping only 100 million BNB in circulation. This commitment is fulfilled automatically every quarter and is calculated according to the Auto-Burn formula.
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