BNB Chain has completed its 31st quarterly token burn, permanently removing 1,579,207.716 BNB from circulation — a haul worth approximately $916 million at the time of the event.
The burn occurred just 10 minutes prior to the announcement and is part of the network’s automatic quarterly token reduction mechanism, a key deflationary policy intended to gradually shrink the total BNB supply to 100 million tokens.
The BNB token burn is determined using an algorithmic formula that considers two main variables:
Current BNB Market Price
- Total Number of Blocks Generated on the BNB Smart Chain (BSC) during the quarter
- This ensures the burn amount reflects both usage and token value, making the process more transparent and market-aligned.
The automatic token burn model was introduced in late 2021, replacing BNB’s prior manual burning approach. This upgrade brought predictability and objectivity to BNB’s supply management, aligning closely with network performance.
Each burn cycle supports:
- A sustainable token economy
- Increased scarcity of BNB
- Long-term value for holders and ecosystem participants
With every burn, the BNB supply edges closer to its fixed cap of 100 million tokens, boosting confidence in the token’s economic design.
BNB Chain’s Expanding Role in DeFi
BNB Chain remains one of the most prominent infrastructures in the decentralized ecosystem. It powers both the BNB Smart Chain and BNB Beacon Chain, supports thousands of decentralized applications, and processes millions of transactions daily.
This token burn further solidifies BNB’s commitment to maintaining a healthy and valuable token economy, aligning its long-term incentives with that of the broader crypto market and Web3 space.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bnb-chain-burns-916-million-in-latest-token-incineration-event/