The BNB Foundation recently completed its 28th quarterly token burn, removing 1,643,698.8 BNB valued at approximately $971 million from circulation. After transitioning from the Ethereum Network to the BNB Chain in 2019, the token adopted an Auto-Burn system to gradually reduce its total supply to 100 million BNB. The burn amount is adjusted based on BNB's price and BSC block generation, ensuring transparency and predictability.
Understanding the BNB Auto-Burn
The BNB Auto-Burn is an independently auditable process that operates separately from the Binance centralized exchange. This quarter's burn took place on the BSC due to the ongoing BNB Chain Fusion, sending the corresponding BNB to a 'blackhole' address. The amount sent to the 'blackhole' is determined by market value and BSC block generation. In addition, BNB implements a real-time burning mechanism based on gas fees, with approximately 234,000 BNB burned under this system since the introduction of BEP95.
Quarterly Burn History
The 28th quarterly burn is part of the effort by the foundation to reduce the total token supply from 145,938,033 BNB to 100 million coins. In the previous burn, 1,944,452.51 BNB valued at $1.17 billion was eliminated. The launch of the BNB Chain Fusion program aims to transfer Beacon Chain functionality to BSC, making the original chain obsolete.
