Key Points
- The BNB Foundation officially announced BNB Chain’s completion of its 29th quarterly token burn.
- This quarter’s burning and future burning will be carried out directly on BSC.
The BNB Foundation officially announced that the BNB Chain has completed the 29th quarterly BNB token burn.
In-Depth Details About the Latest BNB Burn
The Auto-Burn process or the total BNB burned was 1,772,712.363 BNB tokens worth around $1.02 billion at current prices, including the following:
- 1,710,142.733 BNB for the Auto-Burn
- 62,569.63 BNB representing an additional burn for BTokens
According to official notes, previously some BSC users had their BTokens lost when sent to inactive addresses. These were tokens bridged by Binance onto BSC.
The tokens were subsequently reimbursed via the Pioneer Burn Program. In 2020, Binance introduced the program as a new initiative aiming to help eligible users who lose tokens as part of mistakes made while trying out the Binance Smart Chain.
Under the BNB Pioneer Burn Program, Binance covers users’ losses for the accepted cases and counts the lost tokens under the quarterly BNB token burn activities instead.
A portion of the reimbursed BTokens was originally calculated as BNB, but the amount was inadvertently excluded from the previous Auto-Burn process. The amount was included in this quarter’s burn, according to BNB Chain.
According to the official data, the rest of the amount to be burned is 43,533,387.84 BNB tokens, and the rest of the supply is 144,099,981.1 BNB tokens.
What is the BNB Burn?
The native coin of the BNB Chain ecosystem, the BNB token, is essential for powering its Web3 environment.
This supports transactions on the BNB Smart Chain (BSC), the opBNB L2s (optimized L2 solution with low fees and higher throughout), and the BNB Greenfield blockchain (a blockchain-based, decentralized storage network, enabling Web3 computing and a new data economy).
BNB is also a governance token that allows holders to take part in the BNB Chain’s decentralized on-chain governance.
BNB had its mainnet launched on April 18, 2019, after that, the token transitioned from the Ethereum Network to BNB Chain.
The philosophy behind BNB is “Build and Build” and it reflects its role in fostering development within the ecosystem.
BNB Auto-Burn
BNB employs a system called Auto-Burn that gradually reduces its total supply to 100 million BNB tokens. The system offers an independently auditable and objective process, and the figures and reportedly on a quarterly basis.
Also, this mechanism is independent of the Binance exchange.
The burn amount is adjusted according to:
- BNB’s price
- The number of blocks generated on BSC in a quarter
Adjusting the burn amount ensures transparency and predictability.
This quarter’s burn and future burns will take place directly on BSC due to the ongoing BNB Chain Fusion. This is a strategic shift to migrate the BNB Beacon Chain’s functionalities to BSC and retire the BNB Beacon Chain.
The BNB Beacon Chain has a governance role, enabling blockchain community members to stake BNB and participate in decision-making via voting. The BNB Smart Chain is the host for the blockchain ecosystem.
The BNB amount to be burned will be sent to the “blackhole” address, “0x000000000000000000000000000000000000dEaD”.
BNB Real-Time Burn
BNB also uses a real-time burning mechanism that’s based on gas fees. BSC validators determine the ratio of gas fees collected in each block which is burned at a fixed rate. Since the BEP-95 introduction, around 242K BNB have been burned under this mechanism.
BEP-95 is a Binance Evolution Proposal that introduces a real-time burning mechanism to the BNB Smart Chain.
