The regular burns have built trust in the BNB community, with BNB Chain planning to continue them quarterly until it cuts the total supply by 50%.
BNB Chain recently completed its 28th quarterly BNB token burn, removing 1,643,698.8 BNB from circulation, worth about $971 million. This burn is one of the biggest in the network’s history. The BNB token burn is an essential part of BNB Chain’s plan to reduce the total supply and increase the value of the remaining tokens. These quarterly burns follow a set plan to make the tokens scarcer and support long-term price growth.
The 28th quarterly $BNB token burn has been completed directly on BNB Smart Chain (BSC), with 1,643,699 #BNB has been burned.🔥
🧐 View burn details: https://t.co/gE4IEsQlg3 pic.twitter.com/jTZqZqcjhH
— BNB Chain (@BNBCHAIN) July 22, 2024
BNB Chain plans these token burns carefully to benefit the community and investors. By reducing the total supply, the BNB chain creates a deflationary effect that can increase the token’s value over time. Users can use BNB tokens on the BNB Chain network for transactions on opBNB Layer 2 solutions, Binance Smart Chain (BSC), and BNB Greenfield. BNB holders also have governance rights, allowing them to participate in the network’s decision-making processes.
BNB Chain’s Strategic Burns
BNB moved from the Ethereum (ETH) blockchain to the BNB network in April 2019, following the “Build & Build” philosophy, which shows the crypto’s dedication to developing the Binance Coin ecosystem. Despite market ups and downs, BNB has stayed strong and remains one of the top cryptocurrencies by market capitalization. The $971 million burn shows the network’s commitment to its tokenomics strategy and its confidence in BNB’s future.
Binance, the company behind BNB Chain, often stresses the importance of these token burns. Former CEO Changpeng Zhao (CZ) regularly discusses how burns create value for token holders. The regularity and transparency of these burns have built trust and optimism in the BNB community. Recently, BNB Chain has launched several upgrades and partnerships to expand its use and adoption.
From DeFi projects to NFT marketplaces, BNB Chain continues to diversify its offerings, attracting a wide range of developers and users. Looking ahead, BNB Chain plans to keep the quarterly burns going until it cuts the total supply of BNB tokens by 50%. Currently, BNB is trading at $594, with a total supply of 145.9 million BNB.
