OKX slashes OKB supply by 93% in $26B token burn

OKX, one of the leading cryptocurrency exchanges, has executed a landmark token burn of 278,999,999 OKB tokens, valued at approximately $26 billion, reducing the total supply from 300 million to just 21 million tokens [1]. This represents a 93% reduction in the circulating supply of OKB and is considered the most radical deflationary move by any major exchange to date. The burn was conducted via a single transaction sent to an unrecoverable dead address, permanently removing a vast majority of OKB from circulation. The move is part of a broader overhaul of OKB’s tokenomics, locking the token into a strictly deflationary model with no possibility of future minting [1].

The decision underscores OKX’s commitment to reshaping OKB’s role within its ecosystem. Alongside the token burn, the exchange announced the permanent removal of OKB’s minting function, effective August 18, when the upgraded smart contract goes live. This action is intended to enforce long-term scarcity and enhance the token’s value proposition for holders [1]. Additionally, OKX is phasing out its original blockchain, OKTChain, with remaining OKT tokens being automatically converted into OKB by August 15. OKTChain will continue operating until January 2026, but its consolidation into the OKB framework marks a strategic shift in focus toward X Layer, OKX’s flagship blockchain [1].

Market reactions to the burn have been mixed. OKB’s price surged 25% to $120 immediately after the announcement but has since retreated to $93.46 as of press time. The token has still posted a 107% weekly gain, reflecting strong short-term investor sentiment despite lingering uncertainty about the long-term effects of such a drastic supply shock. Analysts suggest that the artificial scarcity created by the burn may not be sufficient to offset the token’s limited real-world utility outside the OKX ecosystem [1].

The burn also reflects a broader trend within the cryptocurrency industry of exchanges and platforms adopting deflationary strategies to bolster investor confidence amid heightened regulatory scrutiny and market volatility. OKX’s approach aligns with similar efforts by other major players to stabilize token value and reinforce utility through controlled supply management [1].

Sources:

[1] OKX cuts OKB supply to 21m in $26b token burn. https://crypto.news/okx-cuts-okb-supply-to-21m-in-26b-token-burn/