BNB Chain has completed its 36th quarterly token burn, sending 1,615,827.795 BNB tokens to an inaccessible wallet address. At current market prices, the burned tokens are worth approximately $932 million, making it one of the largest quarterly burns in the network’s history.
The auto-burn mechanism is part of BNB Chain’s deflationary tokenomics, designed to reduce the total supply of BNB over time. Each quarter, a percentage of the block rewards generated on BNB Smart Chain and BNB Beacon Chain is destroyed, along with a portion of the gas fees collected. The process continues until 50% of the total BNB supply (100 million tokens) has been burned.
To date, BNB Chain has destroyed approximately 62 million BNB tokens through its regular burn schedule. The quarterly burn amount is calculated based on the price of BNB and the number of blocks produced during the quarter, making it variable. Higher network activity and transaction volumes result in larger burns.
The burn mechanism serves multiple purposes. It creates scarcity for BNB holders, potentially supporting token value over the long term, while also aligning incentives between network validators and token holders. The predictable burn schedule provides transparency and allows the market to price in the expected supply reduction.
BNB, the native token of the BNB Chain ecosystem, traded near $578 at the time of the burn. The token has shown relative strength compared to other major cryptocurrencies, supported by continued development activity on the BNB Chain and its popularity for DeFi applications on BNB Smart Chain.
This article was adapted from U.Today. Read the original here.
