Key Points:
- Binance announces the burning of unused BUSD tokens.
- Multiple blockchain networks will be affected by the token burn.
- This decision follows the delisting of BUSD trading pairs.
Binance has recently revealed its intention to burn dormant Binance-pegged BUSD tokens across multiple blockchain networks, marking the end of its support for this stablecoin.
This move follows Binance’s earlier decisions to delist trading pairs involving BUSD on various occasions.
Binance’s Token Burn Across Four Networks
The cryptocurrency exchange made the announcement via its official Twitter account, stating:
“Later today [Thursday], Binance will initiate a token burn for a number of inactive Binance-pegged tokens. The equivalent amount of tokens, which were originally used as collateral on their respective native networks, will be released.”
In addition to the BUSD coins, the exchange will also be removing TUSD trading pairs. Here are the tokens that will undergo a burn, along with the release of collateral on their respective native chains:
- TUSDOLD (Binance Smart Chain)
- BUSD (Polygon)
- BUSD (Binance Smart Chain)
- BUSD (Binance Coin)
- BUSD (TRON)
Binance issues Binance-pegged tokens to facilitate the use of various blockchain tokens within the Binance Coin (BNB) ecosystem. As previously explained by BeInCrypto:
“The exchange is only supposed to issue B-tokens when it holds 100% collateral in the original token. For example, for every 100 B-USDC tokens, it must have 100 USDC as collateral.”
The community has expressed its appreciation to Binance for its transparency in this process.
This development coincides with Binance’s announcement that BUSD will no longer be available, as its issuer, Paxos, has ceased minting the stablecoin. Previously, on August 30th, BeInCrypto reported that Binance had removed eight BUSD trading pairs.
In another update, Binance has modified its fiat liquidity provider program to offer rebates based on the performance of the previous week. As of the current writing, Binance Coin (BNB) is trading at $212.70, with only a minimal 0.04% decrease in the past 24 hours.”
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