The BNB Foundation recently announced the success of its 28th quarterly burn of its primary token, Binance Coin (BNB). In the process, it implemented a real-time burning system tied to a gas fee.
BNB Foundation Fiery Tradition
The BNB Foundation has kept up the tradition of burning its native token since 2017.
This burn practice is a move to consistently cut its total supply of 145,938,033 BNB in half. By doing so, only 100 million coins will be left in circulation. This strategy was put in place to manage the availability of coins in circulation and help maintain stability in the market.
The 28th quarterly $BNB token burn has been completed directly on BNB Smart Chain (BSC), with 1,643,699 #BNB has been burned.🔥
🧐 View burn details: https://t.co/gE4IEsQlg3 pic.twitter.com/jTZqZqcjhH
— BNB Chain (@BNBCHAIN) July 22, 2024
In this latest removal, it burned over 1.6 million BNB coins overall. This follows its last burn in April during its 27th quarterly token burn. During the ceremony, a total of 1,944,452.51 BNB, worth around $1.17 billion was burned. Notably, every quantity burnt depends on the BNB token price and the number of blocks generated on the BNB Smart Chain each quarter.
Afterwards, the tokens will be sent to a crypto address called “blackhole.” This news came shortly after the Securities and Exchange Commission (SEC) categorized the digital asset and others as non-securities.
Newly Designed Burn Mechanism
The BNB coin is majorly used for transactions across the BSC network, the opBNB L2s, and the BNB Greenfield blockchain. These protocols potentially influence the market value of the digital assets. The community members of the BNB Chain ecosystem take part in its decision-making. Notably, Polygon and zkSync are mulling the governance hub idea.
In an approach to efficiently reach its 100-million-coin supply to the market, the BNB Foundation introduced an updated decentralized Auto-Burn feature called BNB Chain fusion program. This new feature is unique because it allows the quarterly burn directly on the BSC network. This happens without the involvement of Binance and takes place directly on-chain.
Amid the news of the burn the token has maintained sheer market resilience. It is changing hands for $593.67 amid a 24 hour growth of 0.2%.
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