BNB Chain has successfully executed its 36th quarterly burn, permanently eliminating 1,615,827.795 BNB, valued at approximately $932 million. This significant reduction brings the total supply of BNB down to 133.17 million tokens, moving closer to the project's target of 100 million.
Details of the Burn
The burn event took place on July 15, marking an increase in the amount of BNB destroyed compared to the previous burn in April, which eliminated 1,569,307.34 BNB worth around $1.02 billion. This quarterly mechanism functions under an Auto-Burn system that calculates the number of tokens burned based on the price of BNB and the total blocks produced on the BNB Smart Chain (BSC) during the quarter.
The impact of this burn is significant as it reduces the available supply, potentially influencing the market dynamics of BNB in the coming months.
Changes in Burn Process
In a notable shift, this and future burns will occur directly on the BSC, utilizing a process known as BNB Chain Fusion. The BNB will be sent to the blackhole address (0x000000000000000000000000000000000000dEaD) where they will be permanently removed from circulation. BNB Chain has also adjusted its Auto-Burn formula following recent network upgrades that improved block production speed.
Beyond the quarterly burns, BNB Chain operates a real-time burn mechanism under BEP-95, where a portion of gas fees from each block is also permanently removed from circulation. Since this feature was introduced, approximately 291,000 BNB have been burned.
This material is for informational purposes only and should not be considered financial advice.
