1.6 Million BNB Tokens Successfully Destroyed In First BNB Auto-Burn

1.6 Million BNB Tokens Successfully Destroyed In First BNB Auto-Burn

On Monday, Binance announced the successful removal of over 1.6m BNB coins from circulation through its BNB auto-burn procedure.

“For this past quarter, BNB completed its first quarterly BNB Auto-Burn. A total of 1,684,387.11 BNB was removed from circulation.” Reads the announcement.

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This figure takes into account 6,296.2 BNB that was burned from the Pioneer Burn Program, an initiative that helps users who lose their tokens while trying out the Binance Smart Chain. Under the BNB Pioneer Program, Binance assures affected users that it will cover users’ losses for established cases and account for the lost tokens under its quarterly BNB token burn activities.

Going by estimates given during the BNB-auto debut, the program seems to have been a big success at the first attempt given it has managed to burn 1.68M coins which are close to the predicted 1.69m BNB every quarter. The last burn happened under the BNB pioneer program in October 2021 which saw 1,335,888 BNB taken out of circulation. 

This is the 18th burn since BNB’s launch in 2017 and the first under the BNB auto-burn program which was launched last month. Unlike previous BNB burning programs which were based on proceeds generated on the Binance centralized exchange, the new auto-burn program is mainly anchored to user activity on the Binance smart chain and BNB’s price.

Although Binance continues to support the burning of a portion of BSC gas fees in real-time, this new program is considered a more objective and independent process that is free from the Binance centralized ecosystem.

“The implementation of the BNB Auto-Burn is a natural next step in BNB’s journey and will help the BNB community grow through providing greater autonomy, transparency, and predictability,” said Changpeng Zhao (CZ), co-founder and CEO of Binance in the announcement.

Binance has committed to destroying at least 100 million of the total BNB coins in circulation which means leaving only 66,801,148 BNB. The attainment of this milestone shall also mark the end of its auto-burn program.

Coin burning is aimed at eliminating the deflationary effect of coins, leading to a surge in price which is commensurate to demand. That said, the BNB coin is retailing at roughly $473 with last week’s candle close signaling prices north of $500 if all goes well.

Michael Boris
Michael Is A Blockchain Expert And Proficient Crypto Reporter At CoinJot Media With An Academic Degree In Journalism. Disclosure: He owns less than 1 BTC and less than 4 ETH. Contact: [email protected]