Binance has conducted its 10th quarterly token burn for Q4 2019, and burned 2.2 million Binance Coins (BNB) worth $38.8 million. The total amount of Binance Coins (BNB) burned so far is now $245.6 million.
Essentially, Binance burns an amount of Binance Coins (BNB) equivalent to 20% of its profits every quarter, and this will continue until 100 million Binance Coins (BNB) have been burned in total, which is half of the total supply.
That being said, Binance owns a large fraction of Binance Coins (BNB), so Binance does not have to buy back any tokens to conduct their burn, instead Binance simply burns some of the tokens they already hold. Therefore, there is really no cost for Binance to conduct the quarterly token burn, and it does not directly increase buying pressure on the market, nor does the burn limit market supply.
That being said, the idea behind the token burn is that it decreases the total supply of Binance Coins (BNB), which should theoretically increase the value of Binance Coin (BNB) long term. As stated previously, since Binance is not removing any tokens from the actual market this effect does not really happen.
In reality, the quarterly token burn creates short term speculation, and makes Binance Coin (BNB) a more desirable asset to some investors. Indeed, Binance Coin (BNB) rallied from $16.50 to $18.30 over the weekend when the token burn happened, but there is no lasting rally.
One final stat is that 187.5 million Binance Coins (BNB) continue to exist, meaning 12.5 million Binance Coins (BNB) have been burned so far, so the quarterly token burns will likely continue for many years.