- BNB Chain burns 1.58M tokens, worth $916M, reducing supply to control inflation.
- BNB Foundation targets reducing total supply to 100M tokens through quarterly burns.
- Despite the burn, BNB’s price remains stable with slight short-term fluctuations.
BNB Chain, the blockchain network supported by Binance, completed its 31st quarterly token burn using its established Auto-Burn mechanism.
This latest event permanently removed 1.58 million BNB tokens, valued at roughly $916 million, from circulation.
The BNB Foundation confirmed the exact number, destroying 1,579,207.716 BNB tokens. This burn continues the strategy to reduce BNB’s total supply; over 40.88 million BNB still need burning to reach the 100 million target from the current supply of approximately 139.31 million BNB.
The Auto-Burn process itself is open and formulaic. The amount burned each quarter adjusts based on BNB’s price and the number of blocks produced on the Binance Smart Chain (BSC). Burned tokens are sent to a verified “blackhole” address (0x00…00dEaD), ensuring they are permanently destroyed and irrecoverable.
Related: MEXC and BNB Chain Strengthen Ties to Empower Token Listings & Marketing
What is the Goal of BNB’s Quarterly Burns?
Currently, the total supply of BNB stands at 139.31 million. The BNB Foundation has set a target to reduce the total supply to 100 million BNB tokens, advancing its commitment to controlling inflation within the network.
This mechanism aims to manage inflation within the network and create a more efficient token economy, ideally supporting BNB’s long-term value stability.
How Did BNB Price React to the Latest $916M Burn?
Despite the large dollar value of tokens destroyed, BNB’s price showed limited immediate reaction. BNB traded around $580.23 after the burn announcement (Apr 16), down 1.44% over 24 hours but still up 4.37 percent over the week.
Related: BNB Chain Now Tops Solana in DEX Trading, Price Jumps
While token burns lead to price increases due to reduced available supply, the impact on BNB’s market price has not been immediate. However, the long-term effects of these burns may help maintain the stability of the BNB ecosystem and its ongoing growth.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
