Binance's BNB Chain Burns Another $772M in Tokens
BNB Chain has burned 1,830,382 BNB tokens worth around $772 million in its latest auto-burn event.
- BNB Chain has burned roughly $772 million worth of BNB tokens as part of its quarterly auto-burn event.
- The latest burn brings the total amount of BNB burned to 34,921,230, accounting for roughly 21% of the total circulating supply.
- Binance has committed to burning 100 million BNB or 50% of the total token supply.
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BNB Chain, formerly known as Binance Smart Chain, has completed its quarterly auto-burn event for Q1, 2022, taking roughly $772 million worth of BNB tokens out of circulation.
BNB Chain Burns $772M Worth of BNB
BNB Chain has completed its latest quarterly auto-burn.
Today, the BNB Chain executed its second automatic quarterly token burn event, taking 1,830,382 BNB tokens worth around $772 million out of circulation. The latest burn has upped the total number of tokens burned to 34,921,230 BNB, accounting for roughly 21% of the total circulating supply of 165,078,769 tokens. Binance’s long-term goal is to burn 100 million BNB tokens, which equates to 50% of the total BNB supply.
Today’s burn represents the 19th quarterly burn event since the program was launched in late 2017. It is also the second quarterly auto-burn, meaning the number of tokens burned was calculated based on the price of BNB and the number of blocks produced by the chain during the last quarter. Previously, the number of BNB tokens burned every quarter was based on the BNB trading volume on the Binance exchange.
Besides the quarterly burning events, BNB Chain has also implemented a second, real-time burning mechanism akin to Ethereum’s EIP-1559. That mechanism burns a portion of the BNB spent on gas or transactions fees on the blockchain. The BNBBurn.info data tracker shows that BNB Chain has burned 72,422 BNB worth around $30.5 million in the last seven months since this mechanism was implemented. For comparison, Ethereum, which pioneered the real-time transaction fee burning model in August 2021, has burned approximately 2,131,280 ETH worth almost $6.5 billion.
Blockchains like Ethereum and BNB Chain implement token burn mechanisms to reduce the supply of their native tokens, which supposedly makes them more attractive as stores of value and incentivizes holders to keep their coins. Today’s $772 million BNB burn, however, has so far failed to spark interest in the cryptocurrency. BNB is trading at $420 at press time, up around 4.6% on the day.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.