The BNB Foundation has officially announced the successful completion of the 28th quarterly BNB token burn by BNB Chain. This latest burn event eliminated a total of 1,643,698.8 BNB tokens, valued at approximately $971 million at the time of the burn.
Key Details of the Burn
Auto-Burn Mechanism: The BNB Auto-Burn mechanism ensures a transparent and predictable reduction of the total BNB supply, aiming to eventually bring it down to 100,000,000 BNB. The burn amount is adjusted based on the price of BNB and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter.
No Contribution from Pioneer Burn Program: This quarter, there was no BNB burned from the Pioneer Burn Program, which helps users recover lost BNB and pegged tokens due to honest mistakes.
Importance of BNB
BNB, the native coin of the BNB Chain ecosystem, plays a crucial role in powering its Web3 environment. It facilitates transactions on the BNB Smart Chain (BSC), the opBNB L2s, and the BNB Greenfield blockchain. Beyond transaction fees, BNB serves as a governance token, enabling holders to participate in the decentralized on-chain governance of the BNB Chain.
Following its mainnet launch on April 18, 2019, BNB transitioned from the Ethereum Network to the BNB Chain, embodying the "Build and Build" philosophy to foster ecosystem development.
BNB Auto-Burn Process
The BNB Auto-Burn mechanism is an independently auditable and objective process. The burn figures are reported quarterly and are independent of the Binance centralized exchange. Unlike previous quarterly burns, this quarter's burn occurred directly on BSC due to the ongoing BNB Chain Fusion, with the corresponding BNB amount sent to the "blackhole" address: 0x000000000000000000000000000000000000dEaD.
Real-Time Burn Mechanism
In addition to the Auto-Burn, BNB implements a real-time burning mechanism based on gas fees. BSC validators determine the ratio of gas fees collected in each block, which are then burned at a fixed rate. Since the introduction of BEP95, roughly 234,000 BNB has been burned under this mechanism.
