Although token burns are a common mechanism to manage cryptocurrency supply, OKX’s recent decision to permanently remove approximately 279 million OKB tokens valued at $26 billion represents a significant contraction in circulating supply, reducing it by 93% to a capped total of 21 million tokens. This action, executed by moving tokens from buyback reserves to a null address, guarantees their irreversible removal from circulation and aligns the total OKB supply with Bitcoin’s well-known supply cap. The burn was funded through historical repurchase programs and OKX’s treasury reserves, marking a one-time event intended to enhance scarcity and support the broader ecosystem upgrade.
OKX slashes OKB supply by 93%, burning 279 million tokens to mirror Bitcoin’s capped total.
Prior to the burn, OKB had a circulating supply near 300 million tokens, but the drastic reduction to 21 million has had notable market implications. Following the burn, OKB’s market capitalization was reported at approximately $1.96 billion, with the token price surging dramatically from around $46 to highs of $142 before stabilizing between $102 and $142. This supply shock also triggered an unprecedented spike in trading volumes, increasing by as much as 13,000% to $723 million, reflecting heightened market interest and intensified supply-demand dynamics. However, such volatility also suggests caution for investors, as rapid price movements may not sustain in the absence of corresponding demand.
To guarantee supply stability, OKX implemented smart contract upgrades that prohibit both new minting and manual burning of OKB tokens. These upgrades coincide with OKB’s designation as the sole native token and gas currency on the OKX X Layer blockchain, with withdrawals to Ethereum Layer 1 halted to encourage migration to the upgraded X Layer via a streamlined swap process. The integration of the Polygon Chain Development Kit aims to improve performance, with staged rollout beginning in mid-August.
Concurrently, OKX is phasing out its OKT token and OKTChain blockchain by January 1, 2026, completing a consolidation of infrastructure under the X Layer. This strategic refocusing targets enhanced throughput, lower fees, and expanded utility for DeFi, payments, and asset issuance on the zkEVM-based X Layer, though market participants should remain mindful of risks associated with transitioning blockchain ecosystems. This transition leverages Layer 2 solutions to improve scalability by linking to Layer 1 infrastructure while reducing costs and enhancing transaction speed.
