BNB Chain Conducts a Token Burn Of More Than $500 Million Worth Of BNB Tokens

BNB Chain has finished destroying a large amount of its BNB tokens, valued at over $500 million, as part of a planned program, the company announced Tuesday. The tokens were eliminated at around 8:00 AM UTC on Tuesday, as seen in transaction 34167E903B9F662A64817266D8A6CE4FE096868DAD0B883E4F838331E280EEFF, according to BNB chain data.

In the official announcement, the details were stated:

Here are the facts and figures from the latest burn:

Auto-Burn (Total BNB burned): 2,064,494.32 BNB

Approximate value in USD: $575,458,677.66

BNB burned from the Pioneer Burn Program: 7,181.03 BNB

Real Burn (Auto-Burn – Pioneer Burn): 2,057,313.29 BNB

Source: https://www.binance.com/en/blog/ecosystem/22nd-bnb-burn-8657700843018962092

Token burning refers to the permanent deletion of coins from their available supply. BNB Chain plans to remove half of its total supply, or 100 million BNB, from circulation through this process, ultimately leaving only 100 million BNB in circulation. This goal is automatically carried out every quarter, using the Auto-Burn formula, as previously reported.

The BNB Auto-Burn provides a transparent and objective process that is auditable. The results are reported on a quarterly basis and operate independently of the Binance centralized exchange. Additionally, BNB Chain continues to burn a portion of its gas fees in real-time using a separate mechanism. 

The Auto-Burn adjusts the quantity of BNB to be burned based on the price of BNB and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter.

BNB is the native coin of the BNB Chain ecosystem, including the BNB Beacon Chain and BNB Smart Chain, and was issued by Binance following an initial coin offering in 2017.

The price of BNB remained stable, trading at $300 on Tuesday morning and traders didn’t show significant reaction to the burn.