TL;DR
- Token Burn Completion: The BNB Chain Foundation completed its 28th quarterly token burn. A total of 1,643,698.8 BNB (approximately $971 million) was permanently removed from circulation.
- Decentralized Auto-Burn Mechanism: Unlike the previous centralized approach, the BNB Foundation now uses a decentralized Auto-Burn mechanism. This system allows direct execution of the quarterly burn on the Binance Smart Chain (BSC) network without relying on Binance.
- Additional Initiatives: The BNB Chain Fusion program phased out the BNB Beacon Chain, transferring all functionalities to the BSC network. A real-time burning system based on gas fees further reduces the token supply.
The BNB Chain Foundation, responsible for managing the BNB token and the Binance Smart Chain (BSC) network, recently announced the successful completion of its 28th quarterly token burn. This strategic move aims to reduce the total supply of BNB and potentially impact the market value of this native cryptocurrency.
Since the program’s inception in 2017, the BNB Foundation has periodically burned tokens to achieve its goal of reducing the total token supply from 145,938,033 BNB to a circulating supply of just 100 million coins. The recent burn removed a staggering 1,643,698.8 BNB (approximately $971 million) from circulation, marking the 28th quarterly event.
In April, during the 27th quarterly burn, the foundation destroyed 1,944,452.51 BNB (worth around $1.17 billion). However, this latest burn introduces a significant change in the mechanism. At the time of writing, BNB Coin is trading at around $600, reporting a minimal gain of under 1%.
Decentralized Auto-Burn Mechanism
Unlike the previous centralized approach, the BNB Foundation now employs a decentralized Auto-Burn mechanism. This updated system allows direct execution of the quarterly burn on the BSC network without relying on Binance, the centralized exchange associated with the blockchain.
The process involves sending the scheduled BNB tokens for burning to a crypto address known as the “black hole.” This transparent and verifiable approach ensures that the tokens are permanently removed from circulation.
BNB Chain Fusion Program
The BNB Foundation kicked off the BNB Chain Fusion program in April to phase out the BNB Beacon Chain. By shifting all features and functions to the BSC network, the foundation is making the Beacon Chain irrelevant.
In addition to the quarterly burns, the BNB Foundation has introduced a real-time burning system based on gas fees. Validators contribute to reducing the token supply by burning a portion of transaction fees at scheduled intervals.
BNB Pioneer Burn Program
To achieve its goal of maintaining only 100 million BNB in circulation, the foundation introduced the BNB Pioneer Burn Program. BSC users can retrieve lost BNB and pegged tokens through this initiative.
The BNB Foundation’s strategic token burns and innovative mechanisms showcase their dedication to effectively managing the BNB ecosystem as a whole.
