On August 13, 2025, the price of OKB surged by over 180% in a short period, skyrocketing from approximately $47 to a peak of $141, setting a new all-time high.

This market movement was triggered by OKX's announcement to burn 65 million OKB tokens and permanently lock the total supply at 21 million. Simultaneously, OKX conducted a technical upgrade on the X Layer chain, significantly optimizing transaction speed and fees, while retiring the old OKTChain and converting OKT tokens to OKB.

Why did OKB undergo this burn? Was it because OKX had to separate OKB for compliance ahead of its IPO? What does the future hold for X Layer? Does OKB still have upward momentum?

Burning Tokens to Shed Platform Token Status and Achieve Compliance for IPO

OKX announced the burning of over 65 million OKB tokens, permanently locking the total supply of OKB at 21 million. This move was the most direct cause of the token's price surge.

At the same time, OKX announced the completion of the "PP Upgrade" for the X Layer chain, integrating the latest Polygon CDK technology. This upgrade increased network throughput to 5,000 TPS, reduced gas fees to nearly zero, and significantly improved Ethereum compatibility. The chain was also integrated into OKX Wallet, Exchange, and OKX Pay. Additionally, OKTChain will be retired, with OKT trading halted on August 13. OKT tokens will be automatically converted to OKB at an average price.

This large-scale burn was not the first for OKB. The token burn mechanism was established from the outset. Early burns were primarily based on OKX platform trading fees, with a portion of profits used 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.

Beyond routine burns, OKB has also undergone several large-scale burns in the past. For instance, in 2020, OKX announced the burning of unissued OKB tokens, gradually reducing the total circulating supply. These burns aimed to increase OKB's scarcity and enhance its value. The latest burn of 65 million tokens was the largest in history, directly aligning OKB's total supply with Bitcoin's 21 million cap.

Projects typically choose to burn tokens to adjust circulating supply, manage inflation, and control market capitalization. However, OKB's burn was not solely for market cap management—that was only the surface reason. Industry insiders believe this large-scale burn and ecosystem integration were strategic preparations for OKX's future IPO plans.

For example, Hashkey Exchange's platform token, HSK, has already transitioned to its public chain token, also for the purpose of pursuing an IPO.

Permanently locking OKB's total supply at 21 million and decoupling it from OKX's platform operations is seen as a major step toward compliance. After these actions, OKB has transformed from a platform token into X Layer's public chain token.

Previously, rumors suggested OKX plans to list in the U.S., which would require meeting strict regulatory requirements. If the platform token were directly tied to the company's profits, U.S. regulators would likely classify it as a security, creating significant hurdles for the IPO.

By repositioning OKB as an ecosystem token rather than a pure platform equity token, OKX can better meet compliance requirements.

OKB's Future Depends on X Layer

2025 marks OKX's renewed compliance efforts in the U.S.

The company established its U.S. subsidiary, OKX.US, registered as a Money Services Business (MSB), and began legal operations in compliance with federal and state regulations. Its U.S. headquarters is in San Jose, California, with Roshan Robert appointed as CEO of OKX U.S. On April 15, 2025, the U.S. CEO announced the official launch of OKX's centralized cryptocurrency exchange and OKX Web3 Wallet in the U.S., with existing OKCoin customers seamlessly migrating to the OKX platform.

For compliance, OKX strengthened KYC verification, implemented geo-blocking, and introduced automated anti-money laundering (AML) and counter-terrorism financing (CTF) systems. It also actively engaged with regulators like FinCEN, CFTC, and SEC to secure necessary licenses. These actions signal OKX's long-term commitment to compliant growth in the U.S., with rumors suggesting an IPO is in the works. The separation of OKB from the platform further clears obstacles for this goal.

So, does OKB—now an ecosystem token for X Layer—have a future?

Currently, OKX's upgrades and ecosystem integration for X Layer suggest it may become a focal point for future development. As OKX's in-house L2 network, X Layer has a strong technical foundation, inheriting the exchange's high performance and security while optimizing transaction speed and fees post-upgrade.

X Layer can leverage OKX's existing user base, providing a significant early advantage. OKX may also continue injecting funds and resources into the X Layer ecosystem through investments and incubators to attract high-quality projects.

OKB could become a key medium for payments and transactions within the X Layer ecosystem. Users may use OKB for trades, DApp service fees, and other activities on X Layer. It may also serve as an incentive and governance token.

However, the L2 space is highly competitive, with leaders like Arbitrum and Optimism already establishing strong ecosystem barriers. X Layer must innovate continuously to stand out. According to DeFiLlama, X Layer currently ranks 122nd among public chains, far behind top-tier L2s.

Thus, OKB's future market value depends on how much effort OKX invests in elevating X Layer and OKB's role within this ecosystem.

For now, OKB resembles a meme-driven speculative asset, especially after shedding its platform token status. Despite burning 75% of its supply, it can no longer be valued as a platform token.