Jessy, Golden Finance
On August 13, 2025, the price of OKB skyrocketed by over 180%, soaring from approximately $47 to $141, setting a new all-time high.
This rally was triggered by OKX's announcement that it would destroy 65 million OKB and lock the total supply at 21 million. At the same time, OKX is upgrading its X Layer chain, significantly improving transaction speeds and fees. It will also decommission the old OKTChain and convert OKT tokens to OKB.
Why was OKB destroyed? Was it necessary to divest OKB to meet regulatory compliance requirements before its IPO? What will be the future of XLayer? Does OKB still have upward momentum?
The destruction is intended to shed its platform coin identity and achieve a compliant IPO.
OKX announced the destruction of over 65 million OKB, permanently locking the total supply at 21 million. This move was the most direct cause of the token's price surge. Meanwhile, OKX announced the completion of its X Layer chain upgrade, dubbed the "PP Upgrade," integrating the latest Polygon CDK technology. This upgrade boosted the network to 5,000 TPS, reduced gas fees to near zero, and significantly improved Ethereum compatibility, integrating it into the OKX Wallet, Exchange, and OKX Pay. Furthermore, OKTChain will be decommissioned, with OKT trading halted on August 13th. OKT will be automatically converted to OKB at an average price. This large-scale burn is not the first for OKB. OKB's burn mechanism has been established since its inception. Early burns were primarily based on OKX platform transaction fees, with a percentage of profits allocated quarterly to repurchase and burn OKB. For example, in the most recent two quarters, the 28th burn on June 19, 2025, destroyed 42,437,632 OKB, and the 27th burn on March 14, 2025, destroyed 31,158,862 OKB. In addition to regular burns, OKB has also conducted several large-scale burns in history. For example, in 2020, OKX announced the destruction of uncirculated OKB, gradually reducing the total circulating supply. These burns are intended to increase OKB's scarcity and thus its value. This 65 million OKB burn is the largest ever, directly pushing OKB's total supply to 21 million, the same as Bitcoin. Projects typically choose to proactively burn tokens to regulate the total circulating supply, thereby controlling inflation and managing market capitalization. However, this OKB burn is not solely for market capitalization management; market capitalization management is only a superficial reason. Many industry insiders believe that this large-scale burn and ecosystem integration are strategic preparations for OKX's future IPO plans. For example, Hashkey Exchange's platform token, HSK, has already switched to its public chain token, also in pursuit of a IPO. Permanently locking OKB's total supply at 21 million and separating it from the OKX platform's operations is seen as a significant step forward for OKX in its regulatory compliance efforts. Following these actions, OKB has transitioned from a platform token to a public blockchain token for the X Layer. Previously, there were rumors that OKX was planning a US IPO, which would require it to meet strict regulatory requirements. If the platform token were directly tied to the company's operating profits, it would undoubtedly be considered a security by US regulators, creating significant obstacles to its listing. Through this move, OKX positions OKB as a more independent, scarce ecosystem token, rather than simply a platform equity token, which will undoubtedly better meet regulatory compliance requirements. The future of OKB depends on the X Layer. 2025 will be the year when OKX will embark on another regulatory compliance journey in the US. It established a US subsidiary, OKX.US, registered as a Money Services Business (MSB), and commenced legal operations in accordance with US federal and state compliance requirements. Its US headquarters is located in San Jose, California, and Roshan Robert has been appointed CEO of OKX US. On April 15, 2025, OKX US's CEO officially announced the US launch of the OKX centralized cryptocurrency exchange and OKX Web3 wallet. Existing OKCoin customers will be seamlessly migrated to the OKX platform. Regarding compliance measures, it has strengthened its Know Your Customer (KYC) verification process, implemented geo-blocking, and launched an automated anti-money laundering and counter-terrorist financing review system. It continues to pursue regulatory compliance with licenses, proactively engaging with FinCEN, the CFTC, and the SEC. These actions signal OKX's commitment to long-term compliance in the US. There are reports that it is pursuing a US IPO. The separation of OKB from the platform undoubtedly clears the way for its IPO. So, does OKB, as the X Layer ecosystem token, have a future? Currently, OKX's upgrades and ecosystem integration with X Layer indicate it may become a key focus of future development. As OKX's proprietary Layer 2 network, X Layer boasts a strong technical foundation. It inherits the high performance and security of the OKX exchange, and after the upgrade, it has significantly optimized transaction speeds and fees. Currently, X Layer can directly leverage OKX's existing traffic, which may provide a significant advantage for its early development. Furthermore, OKX may continue to inject funds and resources into the X Layer ecosystem through investment and incubation, attracting more high-quality projects. OKB may become a key payment and transaction medium within the X Layer ecosystem. Users may use OKB for transactions on X Layer, paying for DApp services, and more. Of course, OKB may also be used for ecosystem incentives, governance voting, and more. However, competition in the L2 space is fierce, with leading L2 blockchains like Arbitrum and Optimism already establishing strong ecosystems. X Layer also needs to continue innovating to stand out. According to DeFiLlama data, X Layer currently ranks 122nd among public chains, far behind leading L2 blockchains. Therefore, OKB's future market capitalization will depend on how much effort OKX devotes to pushing X Layer to new heights, and what position OKB holds within this ecosystem.
At present, OKB is indeed more like an emotionally hyped meme, especially after it ceased to be a platform currency and became a public chain currency. Although 3/4 of the tokens were destroyed, we can no longer price it using the platform currency.
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