BNB Chain Burns 1.6M Tokens in 28th Quarterly Token Burn
The 28th quarterly token burn on the BNB Chain by the BNB Foundation reduced BNB token supply.
In a Monday blog post, BNB Chain reported that 1,643,698.8 BNB coins were burned.
The network estimated the coins' worth at $971 million at burn time.
BNB is the native currency of the BNB Chain ecosystem, supporting its diverse Web3 environment.
It supports BNB Smart Chain (BSC), opBNB L2s, and BNB Greenfield blockchain transactions.
Governance utility allows BNB holders to engage in decentralized on-chain governance of the BNB Chain.
BNB's Auto-Burn feature steadily decreases the token's supply to 100,000,000 BNB.
The burn quantity depends on BNB pricing and BSC block generation each quarter.
Due to the BNB Chain Fusion, the current and future quarterly burns will occur directly on the BSC.
In addition to quarterly burns, BNB uses gas surcharges for real-time burning.
BSC validators set the block gas fee ratio, which is burnt at a preset pace.
BEP95 has burned 234,000 BNB tokens since its launch.
Another notable program is the BNB Pioneer Burn Program, which helps users recover BNB and pegged tokens lost due to honest errors.
Quarterly token burn events protect ecosystem users from these losses.
BNB Burn: Price Impact?
The BNB Foundation hopes to cause token deflation by limiting the coin supply.
Economic theory implies that deflationary currencies with a fixed or falling supply keep or grow value better than inflationary assets.
As BNB coins are destroyed, they become rarer and perhaps more valuable.
Deflationary dynamics may reinforce a cycle. Price increases encourage BNB adoption throughout the Binance ecosystem, increasing demand.
Rising demand verifies the token's value, attracting additional users and merchants. As more coins are burned permanently, supply decreases.
BNB Chain has launched a Meme Innovation Campaign to entice meme currency developers as meme tokens gain popularity.
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