The developer team behind the layer-1 BNB Chain has announced the completion of the quarterly 30th Binance Coin (BNB) burn. About 1,634,200.95 BNB were destroyed in the just concluded quarter, reducing the coin’s total circulating supply to 142,465,780.15 BNB.
The blockchain’s official release revealed that it aims to increase the token’s scarcity and achieve a circulating supply of only 100 million BNB. Therefore, it plans to burn about 42,465,780.15 BNB in the coming quarters.
Over $1.1 Billion BNB Gone
Notably, the burned BNB was realized from two primary sources. First, to facilitate the chain plan to shift the BNB Beacon Chain’s functionalities to BNB Smart Chain (BSC) and retire the BNB Beacon network, Beacon Chain validators abandoned about 110,000 units of self-staked BNB on Beacon Chain, which can no longer be accessed for life.
Furthermore, a more significant percentage of the destroyed tokens was obtained from the chain’s Auto Burn mechanism. This mechanism burns a portion of the BNB transaction fees to reduce the tokens circulating amount. The tokens are automatically sent to a blackhole address. Over 1.5 million units were destroyed in the last quarter via this process.
Price Reaction
Following the burn announcement, the token has not reacted positively. Instead, it has joined the recent downtrend in the crypto market. Within the past 24 hours, it has witnessed a minimal 1.5% price drop and trades at $686.56 at press time.
As the native token of the BSC, BNB is crucial for user’s transaction procession as fees are charged and calculated in it. It also serves as a governance token, as holders can participate in the network’s decentralized on-chain governance. It plays a crucial role in the chain’s BNB Executive Total Value Locked (TVL) campaign, designed to encourage token adoption and ecosystem growth.
Meanwhile, BNB reached a new all-time high above the $780 mark in Q4 2024.
