Binance’s BNB Chain Burns Over $741 Million Worth of Binance Coin (BNB)

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Altcoins
Binance’s BNB Chain Burns Over $741 Million Worth of Binance Coin (BNB)

BNB Chain is set to burn 1,839,786.26 BNB tokens worth $741,840,738. The network is awaiting the execution of the transaction which will permanently remove the coins from circulation at the time of filing this report.

1.8 Million BNB Removed from Circulation

Per data available on BNBBurn.info, the platform responsible for tracking the value, schedule, and history of BNB token burn, the BNB Chain is on the verge of permanently removing over 1.8 million BNB from circulation.

BNB is the native cryptocurrency of the entire Binance ecosystem. It powers both the BNB Beacon Chain and BNB Smart Chain which make up the BNB Chain. 

“$741,840,738 worth of #BNB will be taken out of circulation soon. #BNB is deflationary. If you don’t know what that means, you lack the basic financial knowledge to get lucky in this world. Harsh but true. Time to learn,”tweeted Binance CEO, Changpeng Zhao.   

While bitcoin (BTC) remains one of the most efficient stores of value and hedges against inflation, as the world’s flagship crypto has delivered 99.996 percent deflation in the past decade, BNB tries to beat inflation via its burn mechanism introduced in late 2017.

In October 2021, Binance launched the Binance Evolution Proposal (BEP-95), which introduced a real-time burning mechanism for BNB tokens. 

Since Q3, 2017, the Binance ecosystem has successfully executed 18 burn operations, permanently removing a total of 35,054,926.54 million BNB tokens from circulation.

“BNB uses an Auto-Burn system to reduce its total supply to 100,000,000 BNB. The BNB Auto-Burn mechanism adjusts the amount of BNB to be burned based on BNB’s price and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter. This offers greater transparency and predictability to the BNB community,” explains the Binance team.

Unlike Bitcoin and Ethereum, BNB does not offer mining rewards. Instead, the gas fee is the major reward for validators, in addition to the benefits delegators and validators enjoy from holding BNB.  

The Binance Evolution

In 2019, Binance launched Binance Chain, a marketplace for fast, secure, and decentralized exchange of cryptoassets. Three years after the launch of the Binance exchange, the unicorn rolled out the Binance Smart Chain (BSC), a blockchain that runs in parallel to Binance Chain, however, the former comes with smart contracts functionality and is compatible with the Ethereum Virtual Machine (EVM). 

While some may think BSC is a layer-2 solution designed to bring scalability to Binance Chain, it’s worth noting that BSC is an entirely independent blockchain network that can keep working smoothly even if Binance Chain goes offline.

Powered by the proof-of-stake consensus algorithm, Binance Smart Chain has a block time of three seconds and handles approximately 62.4 transactions per second (TPS). Binance Smart Chain supports cross-chain interoperability and the development of robust decentralized applications (dApps) and a vast array of decentralized finance (DeFi) solutions.  

In February 2022, BNB Chain was introduced by the Binance team, as part of the continuous evolution of the Binance ecosystem. BNB Chain is a combination of Binance Chain and Binance Smart Chain. 

At the time of writing, BNB is the fourth-largest cryptocurrency in the world, with a market cap of $69.40 billion and a 24-hour trading volume of $1.94 billion. The price of BNB is up by 3.97 percent in the last 24-hours, trading around $418.86, according to CoinMarketCap.

Ogwu Osaemezu Emmanuel

Ogwu Osaemezu Emmanuel is a graduate of Mass Communication and Media Studies. He joined the blockchain movement in 2016 when a friend of his introduced him to an investment platform accepting bitcoin. He has never looked back since then. Emmanuel believes the world needs real change and freedom from poverty. He sees crypto and the underlying distributed ledger technology as the catalyst to a better future for all.