The BNB Foundation carried out its 28th quarterly Binance Coin burn, eliminating nearly a billion dollars worth of BNB from circulation.
This gonna be lit
The BNB Foundation announced the burn of 1.64 million BNB, reducing the total supply of the cryptocurrency.
BNB, the native coin of the BNB Chain is used for transactions on the BNB Smart Chain, opBNB layer 2, and BNB Greenfield, as gas token, for the fees.
It also serves as a governance token, allowing holders to participate in decision-making processes for the BNB Chain, with weighted votes.
Ring of fire
On April 18, 2019, BNB transitioned from Ethereum to the BNB Chain and implemented this burn mechanism.
The BNB Auto-Burn system’s goal to gradually reduce the total supply to 100,000,000 BNB.
The amount burned each quarter is based on the price of BNB and the number of blocks created on the BNB Smart Chain.
This newest burn was especially big, because it took place directly on the BSC. The burned tokens were sent to a designated dead address.
The burn address is a crypto address without known private key, so the tokens sent to this address are stuck, no one can access to them anymore.
The BNB has a real-time burning mechanism that removes gas fees from each block, which already eliminated about 234,000 tokens from the circulating supply so far.
Candlelight
I mean it’s a quarterly burning event, not an unexpected, unprecedented surprise, but many analysts think there should have a bigger hype, given the size of the burned amount.
Right now the market cap of BNB tokens stands at $84.76 billion, making it the fourth largest asset on the market, with 145,938,033 BNB in circulation.
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