BNB Chain Burns Nearly $1.17 Billion in 27th BNB Burn

BNB Chain has removed $1.17 billion worth of BNB coins from circulation. BNB price remains relatively unaffected by the news.

BNB Chain Burns Nearly $1.17 Billion in 27th BNB Burn. Image: CryptoSlate

On the afternoon of April 24 (Vietnam time), the BNB Foundation announced the completion of its quarterly BNB burn, marking the 27th such event. The amount of BNB removed accounted for approximately 1.3% of the total token supply. Notably, the burn process did not include tokens burned under the Pioneer Burn program.

According to figures released by Binance's BNB Chain ecosystem operations, a total of 1,944,452 BNB were burned, equivalent to over $1.17 billion USD, at an approximate price of $601 USD per token.

Comparatively, while the amount of tokens removed from circulation was similar to the 26th burn, the USD-denominated value nearly doubled due to BNB's 120% price increase since the beginning of the year. Setting aside ongoing legal disruptions, Binance's frequent launch pools and listings have bolstered BNB's price recently.

BNB burning is a regular activity conducted by Binance every three months since the platform's inception. The exchange actively burns BNB until the total supply reduces to 100 million tokens from the initial 200 million.

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

Additionally, Binance is deploying the Pioneer Burn Program to remove a portion of circulating BNB, an amount equivalent to the verifiable lost funds by BNB Chain users, which is subsequently added to the quarterly total burned tokens.

At the time of writing, BNB is trading at $600.5 USD, down 1% from 24 hours ago. Over the past week, the coin has appreciated nearly 15%, despite negative news surrounding former CEO Changpeng Zhao, as U.S. authorities seek to double his prison sentence.

1-hour chart of BNB/USDT pair on Binance at 11:30 PM on April 24, 2024

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