• BNB chain has completed the burn of over $575 million worth of native BNB tokens as part of a broader program.
• Token burn refers to the process of permanently deleting coins from the circulating supply.
• The BNB Auto-Burn provides an independently auditable, objective process, as figures are reported quarterly.
Binance’s native BNB token has been slowly burning over the past few months, with the total amount burned now reaching $575 million. The burn was executed as part of BNB Chain’s broader program, with Binance confirming the news on Tuesday.
Token burning is the process of permanently deleting coins from a circulating supply. BNB has a total supply of 200 million tokens, of which half are to be removed from circulation through a burning process. This commitment is automatically honored each quarter, and the amount of BNB burned is calculated according to the BNB Auto-Burn formula.
The Auto-Burn formula adjusts the amount of BNB to be burned based on BNB’s price and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter. BNB Chain also continues to burn a portion of BNB Chain’s gas fees in real-time using a bespoke mechanism.
The burning mechanism is independently auditable and objective, with the figures reported quarterly. The mechanism is also independent of Binance’s centralized exchange.
Since the introduction of BEP95, over 145,000 BNB has been burnt under this mechanism. The token burning is an important part of BNB’s inflation management, and BNB’s circulating supply has been gradually decreasing ever since.
The burning of BNB tokens shows the dedication of the BNB team to its inflation management, and serves as a reminder that the BNB token has a finite supply and will continue to become scarce over time.