Binance burns BNB coins to reduce the total supply, which helps increase the value of the remaining tokens. This is part of a deflationary strategy—similar to a company buying back its own shares.
👇 Here’s why Binance burns BNB:
✅ Increase Scarcity = Increase Value
Just like gold or Bitcoin, if something becomes scarcer, it tends to become more valuable.
Burning BNB reduces supply, making each remaining coin potentially more valuable over time.
✅ Reward Long-Term Holders
As the supply decreases and demand grows (especially with more use cases for BNB), the price can rise, benefiting those who hold the coin.
✅ Build Trust & Utility
The regular, transparent burn events prove Binance’s long-term commitment to BNB and its ecosystem.
It also helps promote the utility of BNB in trading fees, DeFi, NFT projects, and more.
✅ Mimic “Stock Buybacks”
In traditional finance, companies buy back shares to boost shareholder value. Burning crypto tokens works in a similar way in the crypto space.
