The BNB Foundation has just completed its 27th quarterly burn of BNB tokens on the BNB Chain. An automatic burning mechanism permanently destroyed a staggering 1,944,452.51 BNB tokens, valued at approximately $1.17 billion at the time of the burn.
BNB is the native cryptocurrency powering the entire BNB Chain ecosystem. It serves as the official coin for the BNB Smart Chain, opBNB Layer 2 solutions, and the new BNB Greenfield blockchain. BNB tokens pay transaction fees and participate in governance voting for projects built on top of these chains.
BNB Pioneer Burn Program: Deflationary Impact on Token Supply
Furthermore, The BNB token burn is key to the cryptocurrency’s deflationary design. When BNB launched in 2017, the founders agreed to systematically remove 100 million BNB tokens, representing half of the total supply, from circulation through an automated burning process, leaving 100 million BNB as the circulating supply.
The BNB Auto-Burn provides a transparent and objective method for implementing this ambitious commitment. Quarterly reports burn figures independently from Binance’s centralized exchange operations. The Real-Time-Burn mechanism boosts the totals by burning some of the gas fees paid on the BNB Chain in real time.
With the BNB Chain Fusion currently underway, this latest quarterly burn and all subsequent burns will occur directly on the BNB Smart Chain (BSC). The burned BNB tokens are permanently removed by sending them to a “blackhole” address: 0x000000000000000000000000000000000000dEaD.
The Pioneer Burn Program permanently destroys BNB tokens equivalent to the lost or stuck funds of eligible BNB Chain users, aiding deflation. Since implementing BEP95, the Pioneer Burn mechanism has incinerated approximately 210,000 BNB. However, this program did not burn any tokens during the latest quarter.
Furthermore, combining the automated quarterly and occasional Pioneer burns helps constrict the circulating BNB token supply over time. This latest $1.17 billion burn further demonstrates the BNB Chain’s commitment to synthetic scarcity as a core value proposition of its blockchain ecosystem.
Related Reading | Bitcoin Cash Halving: Forked Path to Efficiency
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