BNB Chain Successfully Completes its 31st Quarterly Burn, Wipes out 1.57 Million Tokens Worth $916M
- BNB Chain has finished its 31st token burn, taking out 1.57 million BNB worth roughly $916 million from circulation to help limit supply and increase the tokens long-term value.
- More than 40 million tokens are still planned for future burns from a total pool of about 139 million, showing the networks strong commitment to its deflation model.
BNB Chain has successfully carried out its 31st quarterly burn, removing 1.57 million BNB from circulation. The burn resulted in an elimination of about $916 million worth of tokens. Although there was a small drop in price, the burn is meant to help boost scarcity and support the value in the future.
The Binance Chain network carried out its latest token burn using the Auto-Burn system. The tokens were sent to an unrecoverable address, making them permanently removed. Former Binance CEO Changpeng Zhao, CZ, confirmed the update with a short message on X, stating the exact amount of tokens that were burnt.
BNB Chain Method of Deflation and Its Long-Term Impact
The burn system, which was introduced through BEP95 in late 2021, sets up an automatic system to destroy tokens. This new automated method replaces the old manual method done every three months. It helps make the process of reduction steady and easy to track. Basically, the BEP95 adjusts the burn amount every quarter based on price and block activity.
The regular burning helps support the tokens worth and long-term plans of the network. On January 23, over 1.6 million tokens were removed by sending them to dead wallets. This move is part of a plan to slowly lower the number of coins, aiming to boost their worth over time. Although there has not been any rise in prices of the token, experts say the steady reduction and strong project base will help the chain in the future.
Right now, over 40 million coins are still set to be burned from the total amount of about 139 million. Each burn reduces the amount of coins in the market, making them more valuable if people keep wanting to buy. This recent burn shows BNBs continued plan to grow by making the coin harder to get.
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Text source: TronWeekly
