Binance’s BNB Foundation has completed its 28th quarterly token burn, removing 1.6 million BNB tokens worth nearly $1 billion from circulation, aiming to enhance the value and scarcity of the token.
Points
- BNB Foundation burns 1.6 million BNB tokens valued at $971 million.
- This is the 28th quarterly burn, occurring directly on the Binance Smart Chain （BSC）.
- The burn includes future burns, linked to the BNB Chain Fusion.
- Real-time burning mechanism based on gas fees, introduced through proposal BEP95.
The BNB Foundation has announced the successful completion of its 28th quarterly token burn, eliminating nearly $1 billion worth of BNB tokens from circulation. This burn involved 1.6 million BNB tokens and was executed directly on the Binance Smart Chain （BSC）, reflecting a shift from previous auto-burns to the new BNB Chain Fusion method.
The foundation detailed that future token burns would also occur directly on the BSC, with the corresponding BNB amount sent to a “blackhole” address to permanently remove the tokens from circulation. This process aims to enhance the value and scarcity of BNB by reducing the overall supply.
Additionally, the BNB Foundation provided updates on its real-time burning mechanism, which bases token burns on gas fees collected from transactions on the Binance Smart Chain. Introduced through proposal BEP95, this mechanism allows validators to determine the ratio of gas fees to be burned, ensuring a continuous reduction of BNB supply. Since its implementation in October 2021, this mechanism has led to the burning of 234,000 BNB tokens, worth $138 million.
Despite the significant token burn, BNB’s price struggled to gain momentum, trading at $591 with a 1.3% decline over the past day. However, the trading volume surged by 32% to over $2 billion, indicating increased trader interest. While the price didn’t show a strong reaction, historical patterns suggest that such burns can lead to price increases over time.
解説
- Binance’s 28th quarterly BNB burn is a strategic move to enhance token value by reducing supply.
- The shift to burning tokens directly on the Binance Smart Chain reflects the ongoing BNB Chain Fusion.
- The real-time burning mechanism ensures continuous supply reduction, contributing to long-term value appreciation.
- Increased trading volume post-burn indicates heightened market interest, even if immediate price gains are not observed.