For this 22nd quarterly burn, more than 2 million BNB were withdrawn from circulation, representing a value of more than $575 million on average over the past period. This operation is part of the goal of reducing the number of BNB in circulation to 100 million.
A first burning of BNB in 2023
In 2017, Binance implemented the quarterly BNB token burn, and this tradition continues today with the BNB chain. It is thus on the occasion of this 22nd burning, that exactly 2,064,494.32 BNB was deletedwhich corresponded to $575,458,677.66 taking into account the quarterly average:
Figure 1 – BNB 22nd burning transaction
It is therefore first combustion of the year which corresponds to the amount automatically defined by the Auto-burn mechanism during the last quarter of 2022.
To calculate the number of BNB to burn, several factors are taken into account, such as the number of blocks created on the BNB Chain blockchain during the past quarter, or the average price of the token during this period.
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Mechanisms to reduce the amount of BNB in circulation
Besides the Auto-burn mechanism, there are other ways to reduce the number of BNB in circulation. This is especially the case with the BEP-95 introduced in the Bruno update of 30. November 2021. Since this update, part of the transaction fees on the BNB chain is burnedtoo, and it is possible to follow this live on the BNBBurn site, in the same way as the estimate for the next quarterly burn:
Figure 2 – Tracking the various BNB burns on BNBBurn
The Pioneer Burn system also makes it possible to withdraw tokens from circulation that are officially considered lost, i.e. sent by mistake at an address where no one controls the private key. In this case, Binance sends replacement tokens in favor of the person making the request to burn an equivalent amount.
For the 22nd quarterly burn these are 7,181 BNB falling under the Pioneer Burn mechanism and more than 145,000 in total since the start of the program.
Additionally, Binance wants to migrate all BNBs still in ERC-20 format, the Ethereum (ETH) standard, to the BNB Chain standard, namely BEP2. For this, Binance allows BNB ERC-20 deposit but not withdrawal on this network. A total of 16 million tokens are affected and these will be burned to be reissued on the BEP2 standard. However, note that this operation will not change the total amount of BNB and it will not be counted in any quarterly burn.
Thanks to the different methods, the total number of BNB must reach, in time, a maximum amount in circulation of 100 million units.
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