The BNB Foundation's 28th quarterly burn removes 1.64M BNB, worth $971M, reducing supply and potentially boosting BNB's value.

BNB's governance lets holders participate in decisions, enhancing its role beyond transactions in the BNB Chain ecosystem.

BNB's real-time burning mechanism has eliminated 234,000 tokens, supporting a deflationary dynamic to maintain token value.

The 28th quarterly Binance Coin (BNB) burn, announced by the BNB Foundation, would remove 1.64 million BNB tokens, or roughly $971 million. Because of this momentous occasion, there is less BNB in circulation overall, maintaining the token's value over time.

https://twitter.com/BNBCHAIN/status/1815268226609148217

Important parts of the BNB Chain ecosystem are BNB, opBNB layer 2, and BNB Greenfield. Holders are able to participate in the decision-making process of the BNB Chain through the governance component of BNB.

Transition from Ethereum and Burning Mechanism

From Ethereum to the BNB Chain, it happened during the burning procedure on April 18, 2019. Therefore, being that BNB Auto-Burn works, the total supply of BNB is 100,000,000. The following are the rules that govern how much of it is burned: BNB price and the number of extra blocks incorporated into the BNB Smart Chain in a quarter.

This latest burn is unique because it occurred directly on the BNB Smart Chain (BSC). The burned tokens were sent to a "dead" address, specially designated for this purpose. Additionally, BNB has a burning mechanism that burns gas fees from each block. According to the latest report, this mechanism has removed about 234,000 tokens so far.

Impact of the Burn

The BNB Foundation aims to create a deflationary mechanism by reducing the total coin supply. This supports the token’s value over time. Economic theory suggests deflationary currencies with a fixed or decreasing supply tend to hold or gain value better than inflationary assets. As BNB coins are destroyed, the remaining coins become scarcer and theoretically more valuable.

This deflationary dynamic can initiate a reinforcing cycle. Higher prices incentivise increased usage of BNB across the Binance ecosystem, driving up demand. Consequently, as demand strengthens, the rising value validates the token’s worth, attracting new users and traders. This further reduces the supply as more coins are permanently locked through burnings.

However, no guarantees exist for a price increase. Much depends on wider adoption and market conditions. Additionally, BNB Chain has announced a Meme Innovation Campaign. This campaign aims to attract meme coin developers amid the rising popularity of meme tokens. The network revealed in a recent post on X that it is setting aside up to $1 million. This reward will be given to eligible developers who deploy their meme coin projects on the network.

🚀💥 The news is explosive: 1.6 million $BNB BNB, or nearly 1 billion dollars, were burned!
A new destruction of BNB, the emblematic token of the Binance ecosystem, has taken place. The BNB Foundation announced that these BNBs were transferred to an address known as a “black hole”, making their recovery impossible.
The foundation burned 1,643,698 BNB as part of its regular token destruction operations. For the 28th consecutive time, this quarterly operation was carried out, with the total value of tokens burned reaching approximately $971 million.

On Monday, the BNB Foundation announced the execution of its 28th quarterly BNB token burn. The mechanism burned over 1.64 million BNB tokens (approximately worth $971 million) in the routine process.

BNB is the native coin of the BNB Chain ecosystem that supports its Web3 ecosystem. After the mainnet launch back in 2019, the token made its transition from the Ethereum Network to the BNB Chain. The foundation utilizes the auto burn system to moderately reduce the tokens’ supply to 100 million.

1.6 million BNB tokens burnt

28th quarterly BNB token burn recorded a slight decline from the last similar event. The 27th quarterly burn report depicted that 1,944,452.51 BNB tokens (approximately worth $1.17 billion) were sent to the dead wallet forever. However, this quarter saw a burn of 1,643,698.8 BNB tokens.

The report mentioned that the foundation Auto-burn lays out an independently auditable, objective process for them. However, this burn event happened directly on BSC due to the ongoing BNB Chain Fusion. The mechanism stands free from Binance.

Also read: Is BNB ready for the bull run?

This is unlike the previous burn events, as due to the ongoing BNB Chain Fusion, this quarter’s burn and future burns will happen directly on BSC. The burn tokens are being sent to the wallet named “blackhole.”

The report also mentioned that the chain implements a real-time burning mechanism which is based on gas fees. More than 234K BNB tokens have been burnt since the introduction of BEP95.

BNB gets a tough contest from Solana

Data provided by Coinmarketcap shows that despite the burn routine being in place, BNB price registered a marginal drop in the last 90 days. It is still up by 92% on the year to date (YTD) period after recording a massive surge in March 2024.

BNB is trading at an average price of $600, at the present time. Its circulating supply stood over 145.9 million with a market cap of $87.5 billion. It is still down by 16% from its all time high of $720.67, recorded on June 6, 2024.

CoinMarketCap Data

BNB has managed to maintain its position as the 4th biggest cryptocurrency while Solana (SOL) is trying to close in the margin. SOL gained more than 34% in the last 30 days while BNB price rose by around 2% during the same period. This move has helped Solana attain a $83 billion market cap. Its price is up by 2.64% in the last 24 hours, and it currently trades at an average price of $178.76.