BNB Chain Burns $1.2 Billion as Supply Drops Toward 100 Million

The BNB Foundation has announced the successful completion of its 33rd quarterly BNB token burn. The Auto-Burn, part of a plan to reduce BNB’s total supply, increases its scarcity and supports the ecosystem’s growth. The burn took place on the BNB Smart Chain, and the tokens were sent to a “blackhole” address. 

Recent upgrades to its governance process, following BNB Chain Fusion, increased block frequency and prompted adjustments in the system to keep the Auto-Burn effective.

33rd Quarterly Burn Details

The BNB Chain recently completed its 33rd quarterly burn, removing 1,441,281.413 BNB from circulation. The token was worth $1.208 billion, bringing the total supply down to 137,738,379.26 BNB. The Auto-Burn system aims to reduce the supply to 100,000,000 BNB and adjusts the burn amounts based on BNB’s price and the speed at which blocks are generated on the Binance Smart Chain (BSC). 

The tokens were sent to the “blackhole” address (0x000…dEaD) on BSC, ensuring transparency and making verification easy without relying on Binance’s exchange. BNB is the primary token used for transactions, governance, and as a reserve on BNB Smart Chain, opBNB L2s, and BNB Greenfield. 

Its many uses support BNB Chain’s Web3 ecosystem, helping to grow development and adoption. Additionally, BNB’s real-time burning via BEP95 has destroyed about 276,000 BNB, using gas fees collected from BSC validators. The burn process makes BNB scarcer, potentially increasing its value for holders who participate in decentralized governance. 

Historical Context and Impact of Burns

The BNB Foundation had earlier completed burn exercises, including the 32nd quarterly burn in July this year. The exercise permanently removed 1,595,599 BNB tokens valued at roughly $1.024 billion from circulation. This significantly reduced the total supply of BNB in circulation. Both this burn and the 33rd followed the Auto-Burn formula, which adjusts based on price and block generation. 

Together, the quarterly burns and the real-time BEP95 mechanism have removed millions of BNB from circulation, bringing the total closer to the foundation’s 100,000,000 mark. This deflationary strategy fits with BNB Chain’s “Build and Build” philosophy, which encourages sustainable growth. The transparency of the burns, with verifiable transaction IDs, builds trust among users. 

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