The cryptocurrency exchange OKX recently burned 278,999,999 OKB tokens valued at over $26 billion. This step was part of a tokenomics update.
Details of the $26 Billion OKB Coin Burn
OKX announced the burning of 278,999,999 OKB tokens, reducing the total supply from 300 million to 21 million. This burn was a significant move that triggered an initial price spike above $120 before stabilizing around $96.
Smart Contract and OKT Chain Updates
The burning of OKB tokens was also accompanied by changes to its smart contract, including the removal of minting functions and manual burns. This reduces supply-side uncertainty. The OKT chain was announced to be decommissioned, with operations slated to cease by January 1, 2026.
Market and Response to Supply Change
The market reacted quickly to the burning announcement, resulting in a sharp price increase. Researcher Hasu noted that the market often overestimates actual circulating supply, and abrupt supply tightening leads to short-term price increases.
The OKB token burn is a significant step for OKX and may impact long-term market trends by altering supply and demand dynamics in the cryptocurrency landscape.
