BNB Burn Ignites Value: $916 Million Token Reduction Fuels Community Hype

Binance co-founder Changpeng Zhao (CZ) announced a major deflationary milestone, confirming the completion of BNB Chain’s 31st quarterly token burn.

In total, 1.57 million BNB, valued at approximately $916 million, was permanently removed from circulation.

BNB Chain Burns $916 Million Worth of Tokens in 31st Quarterly Event

The BNB burn is part of BNB Smart Chain’s long-running commitment to reduce the token’s total supply and potentially bolster long-term value.

According to an official blog post, this quarter’s burn was completed successfully. The remaining total supply of BNB stands at just over 139 million. Former Binance CEO Changpeng Zhao echoed the update with a simple post on X (Twitter).

“$916,000,000 BNB burned,” CZ wrote.

They sent the tokens to a burn address, 0x000…dEaD, making them unrecoverable and effectively reducing the total supply.

The burn occurred under BNB’s Auto-Burn mechanism and marks one of the largest events in the chain’s history. Established under BEP95, BNB’s Auto-Burn system provides transparency and predictability. It adjusts the burn amount based on BNB’s market price and the number of blocks generated on the BNB Smart Chain (BSC) each quarter.

The goal is gradually reducing the token’s circulating supply to 100 million BNB. Once this happens, regular burns will cease.

Deflationary mechanisms are typically bullish, but the market reaction was tepid. BNB’s price slipped 2.11% over the past 24 hours, trading around $578.04 as of this writing.

BNB Price Performance. Source: BeInCrypto

Impact of BNB Burn on Market Sentiment

The muted response mirrors the aftermath of the 30th burn, suggesting that even billion-dollar reductions in supply are not enough to overcome broader market sentiment or investor fatigue. Meanwhile, community members expressed mixed feelings about the event.

“It actually pains me sometimes to see BNB burns! I know it’s part of the deflationary process… but it still hurts brother CZ,” crypto advocate Shahzad Quadri commented.

Meanwhile, others questioned the utility of such a large burn. Users asked CZ why the BNB chain did not redirect the funds toward marketing efforts.

“It’s not up to me. It was in the whitepaper. A promise is a promise,” CZ replied.

This statement resonated with community leaders, including a MEXC exchange KOL, who responded in a post.  

“Saw people wishing it wasn’t burnt. The only way is burning because if it is not burnt, the team won’t be keeping the promise on the whitepaper,” the KOL highlighted.

Changpeng Zhao added a touch of irony, seeming surprised by the size of the burn. Users asked whether this burn was separate from the ongoing gas fee burn introduced under BEP95.

“I have no idea. There are a few different automated burn mechanisms. I learned about this burn on X,” he chimed.

In addition to the quarterly Auto-Burn, BNB implements a real-time burn model that permanently removes a portion of gas fees from circulation. Since its inception, over 259,000 BNB tokens have been burned through this mechanism.

BNB real-time burn. Source: bnbburn.info

Furthermore, the BNB Pioneer Burn Program continues to cover user losses from accidental token misplacements. It uses quarterly burns to offset such events.

CZ has a personal investment, with 98.6% of his portfolio in BNB as of February. Still, the commitment to scheduled burns and BNB’s critical role across BNB Smart Chain, opBNB Layer 2, and BNB Greenfield blockchain reaffirms the long-term strategy to drive utility, governance participation, and ecosystem growth.

Binance Co-Founder CZ’s Crypto Portfolio. Source: X (formerly Twitter)

The BNB community is left watching price action, balancing hope in the deflationary model with the reality of market headwinds.