BNB Foundation Burns $1.024B in 32nd Quarterly Token Burn
The BNB Foundation recently completed its 32nd quarterly token burn, destroying 1,595,599.78 BNB tokens valued at approximately $1.024 billion. This event is part of the foundation's ongoing effort to reduce the total token supply to 100 million BNB, enhancing scarcity and potential value.
The BNB Foundation has officially completed the 32nd quarterly BNB token burn. This is a key event in the Chain ecosystem’s ongoing effort to reduce total token supply and drive long-term value.
About the BNB Burn
BNB, the native coin of the Binance Chain, powers various components of the Web3 environment, including the BNB Smart Chain (BSC), opBNB Layer 2 solutions, and Binance Greenfield. It facilitates transaction fees, serves as a governance token for decentralized on-chain voting, and acts as a strategic reserve asset, drawing increasing interest from mainstream financial institutions.
Originally launched on the Ethereum Network, the coin moved to the BNB Chain after its mainnet launch on April 18, 2019. Its core philosophy, “Build and Build,” reflects its mission to support innovation and development within the blockchain space.
To maintain a healthy supply-demand balance, Binance coin employs a dual burn mechanism, which is the Auto-Burn system and real-time gas fee burning.
Why Burn?
The Binance coin Auto-Burn mechanism aims to reduce the total coin supply to 100 million tokens. It is a transparent and predictable process that determines the number of tokens to burn each quarter based on BNB’s market price and the total number of blocks generated on BSC.
In addition to quarterly burns, BNB also implements a real-time burning system introduced through the BEP95 protocol.
The mechanism continuously removes a portion of the coin from circulation by burning a fixed percentage of gas fees collected in each block. Since its implementation, it has burned approximately 265,000 Binance coins through this process. Validators on the BSC determine the specific portion of gas fees to destroy, making it a dynamic and flexible model.
Furthermore, the Pioneer Burn Program adds a human-centric layer to BNB’s tokenomics. This initiative allows users who have lost some coin or pegged tokens due to honest mistakes to have their losses compensated through quarterly token burns. By doing so, the program not only enhances user trust but also aligns with its vision of supporting a fair and user-friendly ecosystem.
Most importantly, this mechanism is entirely independent of the Binance centralized exchange and is auditable by the public, strengthening its credibility and integrity.
