[Sandbox’s SAND Coin Keeps Retail Frenzy Alive With a Potential Adidas Partnership and the Upcoming Rewards Galore at the Sandbox Alpha Event]
Binance Coin Just Became an Almost Perfect Deflationary Asset, With Over 500 BNB Tokens Burnt in the Past 24 Hours Since the Bruno Upgrade
Binance Coin (BNB), the native cryptocurrency on the Binance Exchange, just became a near-perfect deflationary asset in a world rocked by spinning-out-of-control inflation and the attendant deterioration of consumer purchasing power.
As a refresher, Binance Coin is a utility token that operates on the Binance Chain (BSC), the exchange’s native blockchain.Bear in mind that the BSC is one of the most active blockchains in the crypto sphere, with over 2 million daily active addresses.BNB holders can use the token to trade other cryptocurrencies, pay transaction fees on the exchange, pay crypto credit card bills on Crypto.com, use it as collateral on eligible platforms, etc.
At 08:00 a.m.UTC on the 30th of November 2021, the BSC went through one of its most far-reaching upgrades since its inception.Dubbed the Bruno Upgrade v1.1.5 (also known as the BEP-95 upgrade), the hard fork introduced a real-time burn mechanism for the BNB token.Bear in mind that the Binance Coin began with an initial supply of 200 million tokens, without any possibility for further supply gains via mining.However, Binance committed to a 50 percent reduction in BNB’s circulating supply via periodic burns:
The BEP-95 upgrade now enhances Binance Coin’s existing supply burn regime.To wit, a proportion of the transaction fee – also known as gas fee and collected in BNB tokens – will be sent to a dead address (burnt).
Initially, around 10 percent of the gas fee is scheduled to be burnt, with future changes in this burn ratio requiring voting-based approval.
This brings us to the crux of the matter.Before BEP-95, there were around 168 million Binance Coins in circulation.Over the past 24 hours since the upgrade, over 500 BNB tokens worth $315,690 have now been burnt:
JUST IN: 500 [#BNB] ($315,690 USD) has been burned since the BEP-95 real-time burn upgrade.
— Watcher.Guru (@WatcherGuru) [December 1, 2021]
At the present rate, 15,000 Binance Coins might be burnt every month, based on linear interpolation.As is evident, the Bruno upgrade constitutes a very strong deflationary impulse for the BNB token, thereby paving the way for its sustainable price increase.
Binance Coin is up around 9 percent over the past week.The BNB token is now just 7 percent shy of its all-time high at $690.93 .Should the coin maintain its current trajectory, it can reach a new zenith in around a week’s time.
As we noted earlier, Binance Coin is now a rare deflationary asset in an inflationary world.
Of course, there are other cryptocurrencies as well that have implemented a similar burn mechanism, with Ethereum (ETH) topping the list after its EIP-1559 upgrade .However, until Ethereum 2.0 comes online, the cryptocurrency will continue to add supply via mining.Consequently, at the present stage, Ethereum is not a deflationary asset.Similarly, while Bitcoin’s (BTC) total supply is capped, the current mining regime continues to add to its circulating supply.Against this backdrop, the BNB token might just be the all-encompassing panacea for preserving your purchasing power!
[disclosure and ethics policy.]
Stay in the loop
GET A DAILY DIGEST OF LATEST TECHNOLOGY NEWS
Straight to your inbox
Subscribe to our newsletter.
