Coinspeaker BNB Foundation Completes $971M Quarterly Burn to Lower Token Supply
The BNB Foundation announced that it has completed another round of its scheduled quarterly burn to reduce the supply of the BNB token, the native cryptocurrency of the popular Binance Smart Chain (BSC) network.
In an official announcement on Monday, the nonprofit organization responsible for managing the token and the overall blockchain said it burned a total of 1,643,698.8 BNB, valued at around $971 million, by permanently removing the tokens from circulation.
The move is part of a strategic effort to decrease the total supply of BNB utilized across the BSC network, the opBNB L2s, and the BNB Greenfield blockchain, which could potentially impact the market value of the digital asset.
Historic Token Burn
The recent removal of over 1.6 million BNB marks the 28th quarterly burn conducted by the BNB Foundation since the program began in 2017. Initially, the foundation set a goal to reduce the total token supply from 145,938,033 BNB by half, aiming to maintain a circulating supply of just 100 million coins.
Since then, the organization has periodically destroyed the tokens, with its last BNB burn conducted in April. At that time, the BNB Foundation burned a total of 1,944,452.51 BNB, worth around $1.17 billion, during its 27th quarterly token burn.
The Foundation said it employed the use of the newly updated decentralized Auto-Burn mechanism to conduct the latest burn on July 22.
Unlike the previous centralized counterpart, the new decentralized system allows the organization to conduct the quarterly burn directly on the BSC network without any interaction with Binance, a centralized exchange heavily associated with the blockchain network.
Transparent and Verifiable Token Reduction
Through this new approach, all the BNB scheduled for burning are permanently sent to a crypto address known as the “blackhole” to ensure a transparent and verifiable approach to token reduction.
The foundation said it chose the amount of BNB to be sent to the “blackhole” address based on the token’s market value at the time of the burn as well as the number of blocks generated on the BSC network during a quarter.
Before now, the organization used the centralized quarterly Auto-Burn to conduct its token burn. However, the system changed in April when the foundation announced the launch of the ongoing BNB Chain Fusion program.
The initiative aims to eradicate the BNB Beacon Chain from existence. Through this program, all the capabilities and functionalities of the BNB Beacon Chain are transferred directly to the BSC network, rendering the chain obsolete.
Real-Time Burning System
In addition to changes in the burning mechanism, the BNB Foundation has introduced a real-time burning system based on gas fees. According to the announcement, a ratio of all transaction fees generated by validators is burned at a scheduled time to further decrease the token supply.
Furthermore, the organization has introduced another event called the BNB Pioneer Burn Program to help reduce the supply of the token and achieve its goal of having only 100 million digital assets in circulation. Through this new initiative, BSC users can retrieve their lost BNB and pegged tokens.
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BNB Foundation Completes $971M Quarterly Burn to Lower Token Supply
