The BNB Foundation has completed its 28th quarterly token burn, eliminating 1,643,698.8 BNB valued at approximately $971 million from circulation. The BNB token transitioned from the Ethereum Network to the BNB Chain after its mainnet launch on April 18, 2019.
To gradually decrease its total supply to 100 million BNB, the token utilizes an Auto-Burn system. This system adjusts the burn amount based on BNB's price and the number of blocks generated on BSC during a quarter, ensuring transparency and predictability.
The BNB Auto-Burn Mechanism
The BNB Auto-Burn offers an independently auditable, objective process. The figures are reported quarterly, and the mechanism functions independently of the Binance centralized exchange.
Unlike previous quarterly burns, this quarter's burn took place directly on the BSC due to the ongoing BNB Chain Fusion. The corresponding BNB amount was sent to the 'blackhole' address, effectively removing them from circulation.
The selection of the BNB amount to be sent to the 'blackhole' address was based on the token's market value at the time of the burn and the number of blocks generated on the BSC network during a quarter.
In addition to the Auto-Burn, BNB incorporates a real-time burning mechanism relying on gas fees. BSC validators determine the ratio of gas fees collected in each block, which is burned at a fixed rate. Since the introduction of BEP95, approximately 234,000 BNB has been burned under this mechanism.
A History of Quarterly Burns
This recent elimination of over 1.6 million BNB denotes the 28th quarterly burn carried out by the BNB Foundation since the program's inception in 2017. Initially, the foundation aimed to halve the total token supply from 145,938,033 BNB, with the objective of maintaining a circulating supply of 100 million coins.
The foundation has periodically erased tokens, with the last BNB burn executed in April. During its 27th quarterly token burn, the BNB Foundation eliminated a total of 1,944,452.51 BNB, equivalent to around $1.17 billion.
The system underwent a shift in April with the launch of the ongoing BNB Chain Fusion program. This program seeks to abolish the BNB Beacon Chain, transferring all its functionalities directly to the BSC network, rendering the chain obsolete.
