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BNB Foundation Completes 27th Quarterly Burn of BNB Tokens

Published 24/04/2024, 14:00
BNB Foundation Completes 27th Quarterly Burn of BNB Tokens
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Coin Edition -

  • The BNB Foundation completed its 27th quarterly token burn.
  • Approximately 1,944,452.51 BNB were removed from circulation, valued at about $1.17 billion.
  • The BNB Chain now sends tokens scheduled for destruction to a ‘blackhole’ address.

Recent reports from the BNB Foundation reveal that it has completed its 27th quarterly token burn. According to its official website, 1,944,452.51 BNB, valued at approximately $1.17 billion, has been removed from circulation. This move is part of a systematic effort to reduce the total supply of BNB used across the BNB Smart Chain (BSC), the opBNB L2s, and the BNB Greenfield blockchain.

Launched in 2017, the foundation pledged to cut BNB’s supply by half through token burning. Ultimately, BNB aimed to maintain a circulation of just 100 million coins to stabilize and potentially increase its value. The foundation executes these burns automatically each quarter, using a predefined Auto-Burn formula.

In addition to the scheduled burns, the BNB Chain has updated its token burning mechanism, transitioning from the centralized quarterly Auto-Burn to a decentralized approach on the BSC. This shift is part of its ongoing BNB Chain Fusion initiative, which aims to enhance the blockchain’s infrastructure.

Under the new system, BNB tokens scheduled for burning will be sent to a ‘blackhole’ address on the BNB Smart Chain. Per the platform, this process operates independently from the Binance centralized exchange, ensuring a verifiable and objective approach to token reduction.

Moreover, the BNB Chain has implemented a real-time burn mechanism that eliminates some of the gas fees collected across the network, thereby reducing BNB circulation.

The foundation also announced the Pioneer Burn Program, which removes BNB tokens equivalent to provable lost funds from circulation. By extension, these irrecoverable assets are calculated as part of the quarterly BNB burn.

Since implementing BEP95, the proposal driving this real-time burn, the network has burned approximately 210,000 BNB coins. This ongoing effort helps decrease the overall supply of BNB, supporting its market value.

Meanwhile, BNB has posted a 1.15% rise over the last intraday session, trading at $608.50 during press time.

The post BNB Foundation Completes 27th Quarterly Burn of BNB Tokens appeared first on Coin Edition.

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