Iris Coleman
Nov 01, 2024 13:53
BNB Chain has successfully completed its 29th quarterly BNB token burn, eliminating over 1.77 million BNB valued at approximately $1.07 billion, according to BNB Chain.
The BNB Chain has recently completed its 29th quarterly BNB token burn, effectively removing over 1.77 million BNB from circulation, a move valued at approximately $1.07 billion at the time of the burn. This significant token reduction event was announced by the BNB Foundation, marking another step in the BNB Chain’s ongoing efforts to manage its token supply.
Details of the 29th BNB Burn
The recent burn included two main components: an Auto-Burn of 1,710,142.733 BNB and an additional 62,569.63 BNB burn to account for BTokens. These BTokens were initially lost by Binance Smart Chain (BSC) users when sent to inactive addresses but were later reimbursed through the Pioneer Burn Program. The BNB that was inadvertently excluded from previous burns was included in this quarter’s burn, bringing the total to 1,772,712.363 BNB.
The transaction details for this burn can be viewed on the BSC network. Meanwhile, the remaining supply of BNB stands at over 144 million, with plans to continue reducing this number to a target of 100 million BNB through future burns.
The Role of BNB in the Ecosystem
BNB serves as the native coin for the BNB Chain ecosystem, playing a crucial role in its Web3 environment by facilitating transactions across the BNB Smart Chain, opBNB Layer 2 solutions, and the BNB Greenfield blockchain. Beyond transaction fees, BNB holders can participate in decentralized governance, influencing decisions within the BNB Chain.
Since its mainnet launch in April 2019, BNB has transitioned from the Ethereum Network to its own chain, embodying the “Build and Build” ethos that encourages ecosystem development. The Auto-Burn system, integral to BNB, adjusts the burn amount based on BNB’s price and the number of blocks generated, ensuring a transparent and predictable reduction of the token supply.
Mechanisms Supporting BNB Burns
The BNB Auto-Burn mechanism is an independently auditable process, operating quarterly and separate from Binance’s centralized exchange. This quarter’s burn was executed directly on the BSC due to the ongoing BNB Chain Fusion, with the BNB sent to a “blackhole” address to permanently remove it from circulation.
In addition to the Auto-Burn, BNB employs a real-time burning mechanism based on gas fees, with BSC validators determining the portion of gas fees to be burned. Since the introduction of BEP95, this mechanism has burned approximately 242,000 BNB.
The Pioneer Burn Program further supports BNB users by recovering lost BNB and pegged tokens due to honest mistakes, incorporating these into the quarterly burn events.
For more information, visit the official announcement on the BNB Chain website.
Image source: Shutterstock
