BNB Foundation, the entity supporting the development of the BNB Smart Chain (BSC) ecosystem, recently announced the successful completion of its 31st BNB Auto-Burn. 1,547,732 units of the chain’s native crypto, BNB, valued at approximately $916 million at the time of the burn, were automatically destroyed and ejected from circulation.
The BNB Burn Mechanism
The Auto-Burn mechanism, which was introduced in 2021, is part of BNB’s tokenomics. It aims to reduce the total supply of BNB from its original cap of 200 million to 100 million. The amount of BNB removed during each burn is determined by a formula based on the token’s market price and the number of blocks generated on the Chain during the quarter.
Apart from the Auto-Burn, the BNB Foundation also maintains the Pioneer Burn Program to help users who accidentally lose tokens under verifiable conditions. The organization believes the move supports the community and encourages trust in the BNB network.
In addition to the Auto-Burns and Pioneer Burn Program, BSC has a real-time burning mechanism for gas fees. A portion of gas fees is burned from every block on the network. The blockchain validators determine the ratio of gas fees to be burned, which currently operates at a fixed burn rate. The foundation claims 259,400 BNB have been removed via the real-time burn mechanism.
Notably, BNB remains one of the top-performing assets in the crypto market, with broad utility across trading, transaction fees, NFT platforms, and DeFi applications. At press time, the coin traded at $879.5 with a market capitalization of over $81 billion. Nonetheless, the chain’s 24-hour DEX volume has declined to $834 million after gaining much traction last month.
Other Networks Burn Coins
Other blockchain networks are adopting burns to boost scarcity and value. An example is the Astar Network, which has integrated periodic burn events into its tokenomics. This deflationary mechanism aims to maintain liquidity, increase investor confidence, and foster long-term value creation.
Meanwhile, the lead developer of the popular memecoin project, Shiba Inu, has recently claimed that burning up to 99% of SHIB’s circulating supply is possible. However, such an extreme reduction in supply would represent one of the most aggressive deflationary measures in the crypto industry.
