announcement<\/a> that it would permanently burn 65,256,712 OKB tokens, worth roughly $14.2 billion at the time of publishing. The burn represented around three-quarters of its previous circulating supply.<\/p>\nThe move is part of a broader overhaul that includes an X Layer network upgrade and a revamp of OKB\u2019s economic model. The burn cut the token\u2019s circulating supply to 21 million, limiting availability and fueling demand in a way that experts say mirrors Bitcoin\u2019s scarcity model. Bitcoin, which is currently trading at $112,600, has a circulating supply that is permanently capped at 21 million. <\/p>\n
Moreover, the move positions OKB primarily as the native gas token for X Layer rather than a revenue-sharing exchange coin. X Layer is an Ethereum Layer 2 (L2) network built by OKX in collaboration with Polygon Labs.<\/p>\n
Controversial Move<\/h2>\n
While the surge reflects heightened demand, David Carvalho, CEO of Naoris Protocol, told The Defiant that such moves can also attract criticism.<\/p>\n
Carvalho explained that from a regulatory perspective, dramatic supply changes \u201cmay draw scrutiny to market manipulation rules,\u201d especially as international regulators continue to focus on exchange governance standards.<\/p>\n
He noted that the move highlights the risks of centralized control in ecosystems that are meant to be decentralized. \u201cThe problem here is that when exchanges get to control supply unilaterally (at this level), it becomes the source of a systemic risk, which has nothing to do with markets and dynamics,\u201d he added.<\/p>\n
\u201cThe thing to remember with token burning is that dropping supply doesn\u2019t just naturally increase the price. In this instance, OKX is burning tokens that the treasury already had or were repurchased previously,\u201d Brian Huang, co-founder of Glider, told The Defiant.<\/p>\n
\u201cToday\u2019s move is certainly over-exaggerated. Expect prices to revert somewhat over the next couple of days to weeks,\u201d he added.<\/p>\n
OKX has conducted around 28 buy-back-and-burn events since 2019, eliminating 213.7 million tokens. And now, following this recent one-off burn, the exchange has removed roughly 279 million. <\/p>\n
The exchange currently boasts total assets of over $28 billion, per DeFiLlama. <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
OKB has soared more than 300% following a major token burn on Aug. 15. OKB, the native utility token of the OKX exchange, extended its rally on Thursday, Aug. 21, less than a week after OKX carried out a major token burn on Aug. 15 and introduced strategic upgrades to its blockchain infrastructure. OKB jumped […]<\/p>\n","protected":false},"author":2,"featured_media":402643,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-402642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/402642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=402642"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/402642\/revisions"}],"predecessor-version":[{"id":402645,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/402642\/revisions\/402645"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/402643"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=402642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=402642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=402642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}