BNB Goes Up In Smoke: CZ Honors Nearly $1 Billion Token Burn Promise

Source Bitcoinist

The BNB Foundation has reached its 31st quarterly token burn, taking 1,579,207 tokens out of circulation. This colossal decrease, valued at about $916 million at today’s prices, reaffirms the project’s long-standing dedication to reduce its overall supply.

Burn Size Records Marginal Decline From All-Time High

The latest burn is reported as a dip from the previous quarter’s all-time record. The 30th quarterly burn destroyed 1.634 million tokens worth approximately $1.16 billion. The earlier burn destroyed 1.524 million tokens via the Auto-Burn system and approximately 110,000 units via the Pioneer Burn Program. The latest burn didn’t see any tokens from the Pioneer program.

Token Supply Close To Halfway Point To Achieve Target Goal

By means of this last cut, BNB has collectively burned around 40.89 million tokens now. At a price of $581 per token, this equates to the value of some $23.75 billion eradicated from supply forever.

The original plan in the ecosystem as described in its whitepaper has been to halve the entire supply from 200 million down to 100 million tokens. The supply that exists now amounts to about 139.311 million tokens, leaving the token almost halfway toward its final mark.

Market Position Continues Strong Even Amid Community Worries

The circulating supply continues to be the fifth-largest in market capitalization, with its value at around $81 billion. It is the leading exchange token in the market.

Some of the community members have raised the issue of whether it is rational to burn amounts this big when the money can be used to fund marketing initiatives instead.

Asked how these issues can be addressed, Binance founder Changpeng Zhao replied that the burn mechanism is a promise set forth in the token’s whitepaper, remarking simply: “A promise is a promise.”

Multiple Burning Methods Drive Systematic Supply Reduction

According to data from the foundation, BNB has two mechanisms in place to control its token supply. The first is the quarterly Auto-Burn which varies according to price and network usage. The second occurs real-time via BEP95, burning tokens within gas fees network-wide. All tokens burned are directed into a provable “black hole” address where they are irretrievable from circulation.

The Binance coin token has various roles in its ecosystem, fueling transactions on BNB Smart Chain, opBNB, and Greenfield networks. In addition to paying for transaction fees, it is used as a governance token and reserve asset and also fuels ecosystem growth.

Featured image from Pexels, chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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