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Binance, the world’s largest cryptocurrency exchange in terms of trading volume, recently announced that it would burn a series of inactive Binance-peg tokens. The announcement did not specify the amount of tokens to be burned.
Equivalent Amount of Tokens to be Released Following the Burn
The giant cryptocurrency exchange Binance announced today that it will burn a series of inactive Binance-peg tokens. The announcement noted that after these tokens are burned, an equivalent amount of tokens that are used as collateral on their native networks will be released in the coming days.
The Binance-peg tokens that the cryptocurrency exchange plans to burn are TRXOLD (BSC), PAX (BSC), DAI (BSC), USDP (BSC), PAXG (BSC), PAXG (BNB), BUSD (BSC), and USDC (BSC). The exact amount of these tokens to be burned was not specified.
What is a Binance-peg?
Binance-peg is a highly adaptive method that allows coins or tokens issued on one blockchain, and which cannot be used outside of that and supported blockchains, to be used on other blockchains. This method, which can be used by the cryptocurrency exchange, increases the usage areas of certain coins or tokens.
For example, Binance USD (BUSD) is issued locally on the Ethereum Blockchain. Consequently, BUSD has a limited usage area outside the Ethereum ecosystem. Binance offers a wrapped version called Binance-Peg BUSD, which is designed to track the original value of the ERC-20 BUSD on a 1:1 ratio, to expand the use of BUSD to other blockchains.
Wrapping tokens is a blockchain language used to create versions of the original asset that can be transferred to other blockchains to increase interoperability and interdependence in the digital asset field. Usually, the value of wrapped tokens, as in the case of Binance-Peg BUSD, is secured by locking the collateral of the original asset.
