BNB Foundation has announced the successful completion of the 31st quarterly coin burn by BNB Chain. This operation permanently removed a total of 1.57 million BNB from circulation. At the time of the burn, the BNB tokens had an approximate value of 916 million dollars and were directly sent to a “blackhole” address on the BNB Smart Chain (BSC). These planned burn operations aim to decrease the total supply of BNB over time, maintaining a deflationary structure. The target is to reduce the maximum supply to 100 million BNB.
Automatic and Real-Time Coin Burn Process of Altcoin BNB
BNB coin burn is conducted through two main systems: Auto-Burn and real-time burn. The Auto-Burn system is determined by the price of BNB and the number of blocks produced on BSC and is transparently implemented every three months. This system operates independently of the Binance exchange and is subject to external audits.
Additionally, BNB also burns a portion of transaction fees collected in each block in real-time. Activated with the BEP95 update, this system has so far eliminated approximately 259,400 BNB. This coin burn mechanism plays a crucial role in the long-term sustainability of the network.
The Significance of Coin Burns on the BNB Ecosystem
BNB serves multiple purposes beyond being a transactional currency within the BNB Chain ecosystem, from governance to incentive programs. It is utilized for transactions across networks like BSC, opBNB, and Greenfield. Moreover, users can participate in on-chain votes through BNB coin.
Coin burn operations not only make BNB scarcer but also potentially pave the way for price increases in the supply-demand balance. This emerges as a fundamental factor keeping user interest alive.
Since BNB transitioned from the Ethereum 
$3,094 Blockchain to its network in 2019, it has created a supportive structure for developers under the “Build and Build” philosophy. The BNB Pioneer Burn Program enables users to recover their lost BNB due to erroneous transactions through burn programs.
