BNB Chain, the ecosystem underpinning the Binance Smart Chain and Binance Coin (BNB), recently celebrated a significant milestone – its 25th quarterly BNB burn. This regular event is a critical component of the BNB ecosystem, ensuring its long-term sustainability and value.
#Binance completes the 25th Quarterly #BNB Burn!
🔥 2.14m #BNB has been burned 🔥 pic.twitter.com/3KtkE1y6f5
— Binance (@binance) October 16, 2023
Key Facts and Figures from the 25th BNB Burn:
- Auto-Burn: In this quarter, a whopping 2,139,182.98 BNB were burned, equivalent to an approximate value of $501,617,017 USD. The Auto-Burn mechanism is integral to the ecosystem’s deflationary approach.
- Pioneer Burn Program: On top of the Auto-Burn, 314.69 BNB were removed from circulation through the Pioneer Burn Program. This initiative targets lost funds by eligible BNB Chain users.
- Real Burn: The total BNB burn for this quarter, calculated as Auto-Burn minus the Pioneer Burn, stood at 2,138,868.29 BNB.
The Significance of BNB Burns
BNB, the native cryptocurrency of the BNB Chain ecosystem, holds multiple roles – it fuels the BNB Beacon Chain, the BNB Smart Chain, opBNB L2s, and the BNB Greenfield blockchain. Additionally, BNB acts as a governance token, enabling transactions within projects built on these chains.
From the very inception of BNB in 2017, the commitment was made to reduce the total supply by burning 100 million BNB, thereby ensuring that only 100 million BNB remain in circulation. This is achieved through the Auto-Burn mechanism, an independently auditable process that operates independently of Binance’s centralized exchange.
Furthermore, the ecosystem implements the Real-Time-Burn mechanism, which continuously removes a portion of BNB from circulation by burning a portion of the gas fees generated on the BNB Chain.
The Pioneer Burn Program
The Pioneer Burn Program addresses provable lost funds by eligible BNB Chain users, further contributing to the reduction of BNB in circulation.
All these mechanisms maintain transparency and offer verifiability. Since the introduction of BEP95, approximately 146,650 BNB have been burned through this mechanism.
BNB Chain’s commitment to these quarterly burns is a testament to its dedication to ensuring the long-term sustainability and value of BNB, fostering trust and confidence among its users and investors.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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