BNB Chain Burns $772M in BNB
BNB Chain completed its most recent quarterly auto-burn.
Today, the BNB Chain held its second automatic quarterly token-burn event. 1,830,382 BNBTokens worth approximately $772 million have been taken out of circulation. The latest token burn has increased the number of tokens to 34,921,230BNB, which accounts for approximately 21% of the total circulating supply at 165,078,769 tokens. Binance’sLong-term goal: To burn 100 million BNB tokens. This would equal to half of total BNB supply.
Today’s burn represents the 19th quarterly burn event since the program was launched in late 2017. It’s also the second quarterly auto-burn. This means that the amount of tokens used was calculated using the BNB market price and the total number of blocks generated by the chain in the past quarter. In the past, the number and volume of BNB tokens used in every quarter was determined by the Binance exchange’s BNB trading volume.
BNB Chain has implemented a second, real time burning mechanism in addition to the quarterly events. Akin to Ethereum’s EIP-1559. The mechanism consumes a percentage of the BNB used for gas and transaction fees on Ethereum’s blockchain. According to the BNBBurn.info data tracker, BNB Chain has used 72,422 BNB for approximately $30.5 million over the past seven months. Ethereum, the pioneer of real-time transaction fee burning, has burned close to 2,131,280 Ethereum in comparison. This is almost $6.5 billion.
BNB Chain and Ethereum both implement token burn mechanisms that reduce the supply their native tokens. This supposedly makes them more valuable as stores of value and incentivizes their holders to keep their tokens. Today’s $772 million BNB burn, however, has so far failed to spark interest in the cryptocurrency. BNB traded at $420 at press-time, up 4.6% from the previous day.