BNB Foundation Removes Nearly $1 Billion in Tokens from Circulation

The BNB Foundation has revamped its approach to reducing the supply of BNB tokens by introducing a real-time burning mechanism linked to gas fees. This change complements their previous burn strategies.

On Monday, the foundation completed its latest quarterly burn, removing over 1.6 million BNB tokens, valued at around $971 million, from circulation. This action is part of a strategic effort to decrease the overall supply of BNB across various platforms including the Binance Smart Chain (BSC) and its associated networks.

This burn is the 28th in a series of quarterly reductions since the foundation’s burn program started in 2017. The initial goal was to cut the BNB supply from over 145 million to 100 million. The most recent burn in April saw nearly 2 million BNB destroyed, valued at about $1.17 billion.

The BNB Foundation has transitioned to a decentralized Auto-Burn system, which allows token burns to be executed directly on the BSC network, removing the need for Binance’s involvement. This new method sends all burned tokens to a “blackhole” address, ensuring transparency.

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Additionally, the foundation has launched a real-time burning system that periodically destroys a portion of transaction fees collected by validators. They also introduced the BNB Pioneer Burn Program, which allows users to recover lost BNB and pegged tokens, aligning with their goal of maintaining a 100 million BNB supply.

Alexander Stefanov