The BNB Foundation has removed 1.644 million BNB from circulation, valued at approximately $971 million, as part of its 28th quarterly token burn.
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
The native coin of the BNB Chain ecosystem is used to pay fees on the BNB Smart Chain (BSC), the L2 network opBNB, and the BNB Greenfield protocol. The asset also serves as a governance token for community decision-making.
The Auto-Burn system is employed to destroy coins, aiming to gradually reduce the supply to 100 million BNB. The burn amount is adjusted based on the asset’s price and the number of blocks generated on the BSC during the quarter.
“BNB Auto-Burn ensures an independent, verifiable, objective process. Figures are reported quarterly, and the mechanism is independent of the centralized exchange Binance,” the statement reads.
Additionally, tokens are removed from circulation through a real-time burning mechanism based on gas fees. Since the implementation of BEP-95, approximately 234,000 BNB have been destroyed under this initiative.
The ecosystem also features the BNB Pioneer program, which allows for the recovery of assets lost due to unintentional errors by covering them in quarterly burns.
The price of BNB did not react to the removal of 1.6 million coins from circulation. Over the past day, the quotes have remained unchanged.
Over the week, the token gained 5.8%, lagging behind top assets like Bitcoin (7.1%) or Solana (16.4%). BNB’s market capitalization exceeds $91.2 billion.
In the 27th quarterly burn, 1.94 million BNB were removed from circulation valued at $1.17 billion.