BNB Chain Eliminates $971M BNB in 28th Quarterly Token Burn

The BNB Foundation has completed its 28th quarterly token burn, permanently removing 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 reduce its total supply to 100 million BNB, the token employs 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 provides an independently auditable, objective process. The figures are reported quarterly, and the mechanism operates independently of the Binance centralized exchange.

Unlike previous quarterly burns, this quarter’s burn occurred 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 foundation selected the amount of BNB to be sent to the “blackhole” address 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 implements a real-time burning mechanism based 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 latest removal of over 1.6 million BNB marks the 28th quarterly burn conducted by the BNB Foundation since the program began in 2017. Initially, the foundation set a goal to reduce the total token supply from 145,938,033 BNB by half, aiming to maintain a circulating supply of just 100 million coins.

The foundation has periodically destroyed tokens, with the last BNB burn conducted in April. At that time, the BNB Foundation burned a total of 1,944,452.51 BNB, worth around $1.17 billion, during its 27th quarterly token burn.

The system changed in April with the launch of the ongoing BNB Chain Fusion program. This initiative aims to eradicate the BNB Beacon Chain, transferring all its capabilities and functionalities directly to the BSC network, rendering the chain ineffective.