In the 22nd quarterly burn, more than 2 million BNBs were removed from circulation, with an average value of more than $575 million over the period. This is in line with the target of reducing the number of NBBs in circulation to 100 million.
A first BNB burn for 2023
In 2017, Binance introduced the quarterly burn of BNB tokens, and that tradition continues today with the BNB Chain. Thus, it was on this 22nd burn that exactly 2,064,494.32 BNB were removed, which corresponded to $575,458,677.66 taking into account the quarterly average:
Figure 1 – Transaction of the 22nd BNB burn
It is therefore the first burn of this year that is equivalent to the quantity automatically defined by the Auto-burn mechanism over the last quarter of 2022.
In order to calculate the number of BNBs to burn, several elements are taken into consideration, such as the number of blocks created on the BNB Chain blockchain during the last quarter, or the average price of the token during this period.
Mechanisms to reduce the amount of BNB in circulation
In addition to the Auto-burn mechanism, there are other ways to reduce the number of NBBs in circulation. This is the case of the BEP-95 introduced in the Bruno update of 30 November 2021. Since this update, part of the transaction fees on the BNB Chain are burned, too, and it is possible to follow this live on the BNBBurn site, along with the estimate of the next quarterly burn:
Figure 2 – Tracking the various BNB burns on BNBBurn
The Pioneer Burn system also allows tokens that are officially considered lost, i.e. sent by mistake to an address where nobody controls the private key, to be removed from circulation. In this case, Binance sends replacement tokens to the person who made the request to burn an equivalent amount.
For the 22nd quarterly burn, 7,181 NBBs are covered by the Pioneer Burn mechanism and more than 145,000 in total since the beginning of the programme.
In addition, Binance wants to migrate all BNBs still in ERC-20 format, the Ethereum (ETH) standard, to the BNB Chain standard, namely BEP2. To do this, Binance allows the deposit of ERC-20 BNBs, but not the withdrawal on this network. In total, 16 million tokens are concerned, and these will be burnt to be issued again on the BEP2 standard. It should be noted, however, that this operation will not change the total quantity of BNB, and will not be counted in any quarterly burn.
Through these different methods, the total number of BNBs should eventually reach a maximum quantity in circulation of 100 million units.
