The BNB chain has accomplished its 28th quarterly token burn event. The BNB Foundation confirmed that the recent burn event reduced the BNB chain’s token supply by over 1.6 million tokens. According to the current BNB price, the tokens stash removed from the circulation supply is worth $971 million.
BNB chain implements an auto-burn mechanism
Notably, the BNB ecosystem features an auto-burn system for the quarterly token burn. Aimed at minimizing the BNB supply to 1 billion, the system adjusts the burn amount in line with the current token’s price and blocks generated on the BSC chain.
This BNB auto-burn ensures predictability and transparency alongside providing an independently auditable process. Moreover, this apparatus works independently of the Binance centralized exchange and reports the updated figures quarterly.
Differing from the previous BNB burns, this quarter’s token burn occurred directly on the Binance Smart Chain (BSC). Likewise, BSC will handle the upcoming burns similarly due to the ongoing BNB Chain Fusion. It refers to the strategic shift of BNB’s Beacon Chain’s functionalities onto the BSC and retiring the Beacon Chain.
Besides the auto-burn mechanism, BNB also features a real-time burning apparatus, BEP95, focused on gas fees. First, the validators consider the ratio of gas fee generated by each block, and then it is burned at a fixed rate. Since the launch of the real-time burning technique, 234,000 BNB have burned.
BNB Pioneer Burn is another worthwhile program introduced by the BNB ecosystem. It helps users recover BNBs and pegged tokens lost due to severe bugs in the exchange’s system. Like auto-burn, this initiative covers losses within the ecosystem quarterly, providing additional net safety for its users.
When comes to BNB price analysis, it is currently trading at over $598. It powers the multifaceted Web3 environment within the BNB Foundation. In addition to facilitating transactions on the BSC, Greenfield, and opBNB blockchains, it also holds governance utility. Thus, users can participate in the governance of the BNB chain through the token.
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