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The BNB Foundation has recently announced the completion of its 28th quarterly BNB token burn to manage its token supply and bolster its price action over time.
According to the latest disclosure, this quarter saw 1,643,698.8 BNB tokens, valued at around $971 million, removed from circulation.
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
BNB’s Auto-Burn system aims to gradually decrease the total supply of the token to 100,000,000. This system decides the amount to be burned based on the BNB value and the number of blocks BSC generates in a quarter.
According to the announcement, the most recent burn occurred directly on the BSC due to the ongoing BNB Chain Fusion. This will be the same approach for future burns. The burned tokens will be sent to the “blackhole” address: 0x0000000000000000000000000000dEaD.
The BNB Auto-Burn method is independently auditable and reports figure quarterly, independent of any centralized control from the Binance exchange.
Notably, the BNB Chain announced its last quarterly burn on April 24. The event removed 1,944,452.51 BNB tokens from circulation, worth around $1.17 billion at the time of burn. Last October, the 25th annual burn saw the incineration of over 2.1 million BNB, the single highest burn in two years at the time.
Other BNB Burning Methods
In addition to the Auto-Burn, BNB has a real-time burning method depending on gas fees collected in each block. Since the introduction of BEP95, this method has burnt around 234,000 BNB.
Moreover, the BNB Pioneer Burn Program supports users who have lost BNB or pegged tokens. This program covers these losses through quarterly token burn events, ensuring that users are not permanently disadvantaged by their “honest mistakes.”
BNB Chain continues to innovate and enhance its network. In May, it announced major upgrades to their layer-2 network, opBNB, aimed at increasing transaction efficiency and decreasing gas costs.