Binance Announces Burn of BUSD Tokens on Multiple Chains
Binance has recently been cutting ties with its stablecoin BUSD, and it has now announced a burn of idle Binance-pegged BUSD tokens on numerous chains. Along with delisting BUSD trading pairs, the exchange will likewise burn TUSD pairs. The tokens to be burned and their collateral on native chains are as follows: TUSDOLD (BSC), BUSD (MATIC), BUSD (BSC), BUSD (BNB), and BUSD (TRX).
What Are Binance-Pegged Tokens?
Binance issues Binance-pegged tokens to support the usage of other blockchain tokens in the BNB chain. These tokens are announced after storing 100% collateral of the original token. For instance, for every 100 B-USDC, there must be 100 USDC as collateral.
The Community Reacts
The community has shown appreciation for Binance’s transparency in announcing the burn of BUSD tokens. This development comes after Paxos, the issuer of BUSD, stopped minting the stablecoin. Earlier in the year, Binance likewise delisted eight BUSD trading pairs.
Update on Fiat Liquidity Provider Program
In a separate update, Binance has revised its fiat liquidity provider program to make available rebates based on performance from the previous week. Currently, BNB is currently worth $212.70 with a minimal decrease of 0.04% in the past 24 hours.
Hot Take: Binance Continues to Cut Ties with BUSD Stablecoin
Binance’s decision to burn idle Binance-pegged BUSD tokens and delist TUSD pairs is part of its ongoing efforts to distance itself from the BUSD stablecoin. This move comes after the notice of Paxos, the issuer of BUSD, ceasing to mint the stablecoin. Binance’s commitment to transparency has been appreciated by the community. The exchange has likewise made updates to its fiat liquidity provider program. Regardless of these changes, BNB’s price remains relatively stable.
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