BNB Chain Completes 26th BNB Burn, Removing Over $636 Million

BNB Chain has completed its 26th quarterly BNB burn, permanently removing over $636 million worth of BNB from circulation.

BNB Chain Completes 26th BNB Burn, Removing Over $636 Million. Image: Coin68

The BNB Foundation, operating within the ecosystem of the world's largest cryptocurrency exchange Binance, has announced an update regarding its regular BNB burn.

The 26th quarterly $BNB token burn has been completed through #BNB Auto Burn.

🔥 2.14m #BNB has been burned 🔥

View burn details ⬇️https://t.co/X87qqzEdFv pic.twitter.com/0zaLCkfs39— BNB Chain (@BNBCHAIN) January 17, 2024

In the latest burn event on January 17, a total of 2,141,487 BNB tokens, equivalent to $636 million, were removed from circulation. This includes 1,542 BNB burned through the Pioneer Burn Program and 2,139,945 BNB through Real Burn (Auto-Burn - Pioneer Burn).

The amount of tokens removed is similar to the previous burn in October 2023, but the USD value has increased by over 30% due to the strong recovery in BNB's price, following the overall market uptrend.

Notably, this marks the first time in 25 quarterly burns that the information was posted via the BNB Chain blockchain rather than solely on Binance. This change demonstrates that BNB is now recognized as a token of an ecosystem, rather than exclusively belonging to Binance, especially since the departure of founder Changpeng Zhao.

BNB has seen a 3% decline over the past 24 hours, indicating that the regular token burn news alone was not sufficient to reverse the trend.

Chart: 1-hour BNB/USDT on Binance as of 10:20 AM, January 18, 2024

Token burns have been a quarterly activity conducted by Binance since the platform's inception, aligning with commitments outlined in its original whitepaper. The exchange actively burns BNB tokens until the total supply is reduced from 200 million to 100 million tokens.

Since early 2022, Binance has implemented the BNB Auto Burn mechanism. Instead of basing burned BNB on exchange revenue, Binance now calculates the amount of coins burned based on the BNB price and the number of BNB Chain blocks generated within the corresponding timeframe.

Additionally, Binance has initiated the Pioneer Burn Program to remove a portion of BNB from circulation, equivalent to the amount lost, as demonstrated by BNB Chain users. This figure is then aggregated into the total quarterly burn.

Currently, BNB serves as the native token for BNB Beacon Chain, BNB Smart Chain (formerly Binance Smart Chain), layer-2 opBNB, and BNB Greenfield.