Binance’s BNB Foundation Burns 1.6 Million BNB

• The BNB Foundation has announced the 28th quarterly BNB burn on the BNB Chain, where 1.6 million tokens, worth nearly a billion dollars, were burned.
• BNB has stalled on the price charts, gaining 1% over the past month, but it traded above $600 for the first time in a month today.

The BNB Foundation has announced the completion of the 28th token burn, involving nearly $1 billion worth of BNB tokens.

BNB has been conducting massive burns every three months as it marches towards its commitment to burn 100 million tokens, which is half its total supply. It has adhered to an auto-burn formula since late 2021, as we reported at the time, which provides an independently auditable and objective process, boosting accountability and transparency. Last quarter, the ecosystem burned 1.9 million tokens, worth $1.17 billion at the time. In the previous burn, 2.14 million tokens went up in smoke, worth $600 million at the time, as we reported.

Today, the Foundation announced that this quarter’s burn involved 1,643,698.8 BNB, worth $971 million.

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The 28th quarterly $BNB token burn has been completed directly on BNB Smart Chain (BSC), with 1,643,699 #BNB has been burned.????

???? View burn details: https://t.co/gE4IEsQlg3 pic.twitter.com/jTZqZqcjhH

— BNB Chain (@BNBCHAIN) July 22, 2024

This quarter’s burn was unique, the Foundation revealed, writing:

Unlike previous quarterly Auto-Burns, this quarter’s burn, along with future burns, will occur directly on BSC due to the ongoing BNB Chain Fusion. The corresponding BNB amount will be sent to the “blackhole” address: 0x000000000000000000000000000000000000dEaD.

The Foundation also gave an update on its real-time burning mechanism which it bases on the gas fees. Validators on the Binance Smart Chain (BSC) determine the ratio of gas fees imposed on each block, which is then burned at a predetermined rate. This mechanism was introduced through proposal BEP95, which took effect in October 2021. Since then, it has led to the burning of 234,000 BNB tokens, worth $138 million.

The goal of the burns is to decrease the circulating supply, consequently creating scarcity and propping up the price. Several other ecosystems have similar practices, such as Shiba Inu whose burns, as we’ve reported, have been surging.

BNB Price Struggles

BNB trades at $591, losing 1.3% in the past day for an $86.38 billion market cap, the fourth-largest in the market ahead of Solana, although SOL has closed the gap to less than $3 billion with a 17% surge in the past week.

The burn seemed to elicit excitement from traders, with the trading volume surging 32% to cross over the $2 billion mark. However, the price didn’t follow along, as one analyst noted.

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BNB Chain Burns $971 Million in its 28th $BNB Burn

The price of $BNB did not show much reaction after this news. $BNB Burn is an activity carried out periodically by Binance every three months since the platform was established. The exchange proactively burns $BNB until the… https://t.co/VzStDGdRtO pic.twitter.com/8EWYT4wOpM

— Hazel@FollowTrend.eth (@Hazel_Web3Lady) July 22, 2024

As the analyst, who heads business development at U2U Network, noted, the previous burn found the price at $600 and pushed it to a yearly high above $710.

While it has failed to find any momentum in the past week, and is only up 1.15% in the past month, BNB recently traded above $600 for the first time in over six weeks. In fact, since July 5, the token has surged 31% from a monthly low of $459 to hit a high of $604 earlier today.