BNB Chain Burns $971M Worth of BNB in 28th Quarterly Burn
The BNB Foundation has announced the completion of the 28th quarterly burn of BNB tokens. The latest burn removed about 1.64 million BNB coins worth over $970 million from circulation.
As a reminder, BNB is the native currency of the BNB Chain, used for transactions on the BNB Smart Chain, opBNB layer 2 and BNB Greenfield. It is also a governance token, allowing holders to participate in the BNB Chain’s decision-making process.
28th Quarterly BNB Burn
In an official announcement on Monday, the BNB Foundation disclosed that it has burned a total of 1,643,698.8 BNB, valued at around $971 million, by permanently removing the tokens from circulation.
The move is part of a strategic effort to decrease the total supply of BNB utilized across the BSC network, the opBNB L2s, and the BNB Greenfield blockchain, which could potentially contribute to the overall value and health stability of the entire BNB ecosystem.
The recent removal of over 1.6 million BNB marks the 28th quarterly burn conducted by the BNB Foundation through the Pioneer Burn Program, an initiative introduced by the platform in 2020 to help users who have lost tokens through errors made on the BNB Chain.
BNB Auto-Burn System
The latest amount of tokens was removed from circulation using the Auto-Burn system which is designed to gradually reduce the total BNB supply to 100 million. This mechanism weighs the amount of BNB to be burned based on the token’s value at the time as well as number of blocks generated on the BSC network during a quarter.
Notably, the latest burn happened directly on the BSC network without any interaction with Binance, a centralized exchange heavily associated with the blockchain network.
Through this new approach, all the BNB scheduled for burning are permanently sent to a crypto address known as the “blackhole” to ensure a transparent and verifiable approach to token reduction.
Additionally, BNB has a real-time burning mechanism that burns gas fees from each block, which has removed about 234,000 tokens so far, according to the latest report.
Meanwhile, the 28th quarterly burn had a mild effect on the asset, as it was up by a mild 0.49% in the last 24 hours. At the time of writing, BNB exchanged hands at $596.
The post BNB Chain Burns $971M Worth of BNB in 28th Quarterly Burn first appeared on Cointab.
