BNB Chain team destroys 1,6 million BNB tokens worth $971 million

What’s new? Developers of the BNB Chain blockchain from the crypto exchange Binance have conducted the 28th quarterly burn of BNB native tokens. According to the BNB Foundation, 1 643 698,8 coins totaling $971 million were destroyed.

Developers statement

What else is known? BNB uses an automatic auto-burn system to reduce the total supply to 100 million BNB gradually. The amount of coins burned is adjusted based on the price of BNB and the number of blocks generated on the BNB Smart Chain (BSC) network during the quarter. Thus, providing transparency and predictability, with the mechanism operating independently of the Binance exchange.

BNB implements a real-time burning mechanism based on gas fees. BSC validators determine the proportion of gas in each block that is burned at a fixed rate. Since the implementation of the network improvement proposal number BEP95, approximately 234 000 BNB have been burnt under this mechanism.

The BNB token is required by the BNB Chain ecosystem to enable activities in the Web 3.0 space. The token supports the BNB Smart Chain (BSC), opBNB, and BNB Greenfield networks. BNB is used to pay fees and serves as a governance token, giving holders the ability to participate in the decentralized management of BNB Chain development. Following the mainnet launch on April 18, 2019, BNB moved from the Ethereum network to the BNB Chain.

Unlike previous quarterly automated burn-ins, this quarter and beyond, destruction will take place directly on the BSC due to the ongoing BNB Chain Fusion merger. This is an initiative to migrate the BNB Beacon Chain functionality to BSC and eliminate the use of the BNB Beacon Chain.

Previously, the BSC team conducted a Haber hardfork to optimize data storage and processing on the blockchain. Similar to the Ethereum team’s Dencun, the upgrade improved network performance and reduced transaction costs by up to 90%.

BNB ranks fourth in the overall cryptocurrency ranking with a capitalization of $91,5 billion, behind only bitcoin, Ethereum, and Tether’s USDT stablecoin. The asset is trading at $594,11, having added 0,1% overnight. Weekly growth amounted to 6,3%, and the asset has added 91% since the beginning of the year.