Over 1% of Binance Tokens Just got Burned

BNB Chain has burned over $500 million worth of its native BNB tokens during its 22nd scheduled burn, the first quarterly burn of 2023.

Honoring the pledge made in 2017, 1% of BNB tokens — valued at $500 million — have been burned.
Source: Unsplash

Under its Auto-Burn and Pioneer Burn programs, BNB has pledged to remove half of its total supply — 100 million tokens — from circulation through the burning process. This commitment is automatically honored each quarter using the Auto-Burn formula, with the intention of keeping only 100 million BNB tokens in circulation.

The Auto-Burn formula adjusts to the amount of BNB to be burned based on BNB’s price, as well as the number of blocks generated on the BNB Smart Chain (BSC) during the quarter.

This mechanism is fully independent of the Binance centralized exchange, where BNB Chain continues to burn gas fees in real time.

Burning coins helps control inflation for the given cryptocurrency. Tokens which use proof-of-burn (PoB) as a consensus mechanism are called stablecoins. PoB is a low-energy way to validate transactions and create new coins.