BNB Chain removed about 1.62 million BNB in its 36th quarterly Auto-Burn. The tokens were worth nearly $932 million in mid-July. The move reduced the circulating supply and advanced the network’s long-term plan to limit BNB to 100 million tokens.
According to the announcement, the burn lowered BNB’s total supply to 133,166,127.91 tokens. Quarterly reductions will continue until supply reaches half of the original maximum.
The recent event removed more tokens than the previous quarterly burn. In April, during the 35th Auto-Burn, 1,569,307.34 BNB tokens were burned, which were valued at about $1.02 billion.
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How BNB Chain Calculates BNB Token Burns
Following the transaction in April, the total supply was around 134.79 million tokens. This new burn resulted in another reduction of 1.62 million tokens. Their value was lower due to changes in the market price of BNB tokens.
BNB Chain does not set each burn according to its dollar amount. The project uses a formula for each Auto-Burn involving the BNB token price and the number of quarterly blocks produced on the BNB Smart Chain.
The project said that this operation is fully independent of the Binance platform. This means it does not depend on the activities of the centralized exchange. Thus, this mechanism is different from the trading activities of Binance.
The 36th Auto-Burn changed the process of quarterly burning. According to the network, further burns will take place directly on BNB Smart Chain. This change has been implemented after the BNB Chain Fusion process.
In each burn, BNB is sent to a blackhole address. The tokens are impossible to spend or recover because the address does not have a working private key. The process permanently removes them from circulation.
Why BNB Chain Adjusted Its Auto-Burn Formula
BNB Chain also modified the formula following the third upgrade of its network. Lorentz, Maxwell, and Fermi enhanced the block generation speed. According to the project, the modification keeps intact the essence of the algorithm.
The quarterly Auto-Burn runs parallel to a real-time burn. BEP-95 instructs validators to burn a certain portion of the gas fee revenues gathered from blocks. It takes place when new blocks are generated in the BNB Smart Chain.
Approximately 291,000 BNB have been removed through BEP-95 since launch. The mechanism decreases the supply between quarterly instances.
The last reduction happened amid broader availability of regulated BNB investment products. VanEck launched the first U.S. spot BNB exchange-traded fund in May. It was traded on Nasdaq under the ticker symbol VBNB.
What BNB Chain’s 100 Million Supply Goal Means
BNB is still the native token in the whole ecosystem. Users require it for payments of transaction fees, staking, and governance functions. They remain unchanged despite the reduction of the supply of the token.
After the 36th burn, the total supply of the token stood at approximately 133.17 million BNB. The network must remove around 33.17 million more BNB to reach the 100 million supply target.
Quarterly and real-time burning will continue to occur in the network. Each of the mechanisms eliminates tokens through distinct processes. Together, they advance the long-term goal of reducing BNB supply.
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