The BNB Foundation has completed its 29th quarterly auto-burn, eliminating over 1.77 million Binance Coin (BNB) worth $1.02 billion from the market. Previously reimbursed coins lost due to incorrect address transfers on Binance Smart Chain (BSC) and excluded from the last burn were included in this latest burn.
Why Burn BNB?
Token burn is a process where a certain number of crypto coins or tokens are intentionally removed from circulation, reducing the total supply. The primary method of burning tokens is transferring them to a null address, often known as a black hole.
The BNB Foundation transitioned the token from Ethereum to BNB Chain, claiming to reflect its “Build and Build” philosophy and drive ecosystem development. Its Auto-Burn system aims to reduce the total supply to 100 million BNB and ensure transparency with quarterly adjustments based on the coin’s price and BSC block generation.
Aside from the quarterly auto-burns, BNB also implements a real-time burning mechanism, where a fixed ratio of gas fees collected in each block is burned. According to a recent official blog post, the feature has removed approximately 242,000 BNB from circulation, reducing inflation and increasing the asset’s scarcity.
Generally, token burns boost investor confidence by highlighting a project’s commitment to managing its token economy. This transparent process shows investors that the project team prioritizes stability over short-term gains. As a result, investors often feel more secure, leading to increased investment and improved market sentiment.
BNB’s Historical Growth
At its launch, $15 million was raised from its Initial Coin Offering (ICO). The token was used to reduce trading fees on the Binance exchange. Its utility expanded in 2019 by migrating to BNB Chain as the native token. The introduction of Binance Smart Chain (BSC) in 2020 enabled smart contracts, further expanding BNB’s use cases.
According to data from CoinMarketCap aggregator platform, BNB ranks among the top cryptos with a market capitalization exceeding $83 billion. Currently trading at $577 amidst a dip in the crypto market, BNB has a circulating supply of over 100 million, with 30.5% of tokens still eligible for future auto-burns.
