Binance, the world’s leading crypto trading avenue, has unveiled plans for a major token burn scheduled for Monday, January 22. The burn would be conducted for Binance-pegged across various chains. The initiative doesn’t come as a surprise as the crypto exchange has performed such token burns in the past that mostly encompassed idle Binance-wrapped tokens.

About Binance’s recent burn initiative

In a recent post on X, Binance announced that their team “will burn a significant amount of Binance-pegged tokens on various chains.” In addition, they noted that the process will involve the release of an equivalent amount of these tokens on their respective native networks, which earlier served as collateral. However, the exact amount of burn or the cryptocurrencies to be affected are yet not known.

Such token burns have become a common practice among crypto platforms and developers. Generally, such burns are employed to manage the token supply. Whilst, Binance mostly aims at burning inactive tokens to boost token economics.

Also Read: Binance Lists ETC, ENS, TIA In FDUSD & USDC Spot Trading Pairs

Inside September 2023 token burn

On September 14, Binance revealed its plan to initiate a major burn of pegged coins, as announced on its official X account. Among the candidates for destruction, four out of the five tokens specified were Binance USD (BUSD) tokens across different blockchains. The exchange’s initiative involved burning the pegged tokens on the native blockchains and subsequently releasing the equivalent number of tokens initially used as collateral.

Moreover, a similar process is to be followed in the latest burn today. The tokens in the lineup for the September burn included TUSDOLD on the BSC chain and BUSD across MATIC, BNB, BPSC, and TRX chains. The token burn was initiated just after the crypto exchange announced that it would end support for BUSD in 2024 owing to regulatory challenges from the U.S. Securities and Exchange Commission (SEC).

Also Read: Binance Users Innovate Solutions To Serve Ronaldo In Lawsuit

The post Binance Announces Massive Pegged Token Burn Across Chains appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am