BNB Chain has completed its 22nd BNB burn and first quarterly burn of 2023. The burn includes the Auto-Burn as well as the Pioneer Burn Program.
Here are the facts and figures from the latest burn:
Auto-Burn (Total BNB burned): 2,064,494.32 BNB
Approximate value in USD: $575,458,677.66
Transaction ID (TXID) for BNB burn: View transaction
BNB burned from the Pioneer Burn Program: 7,181.03 BNB
Real Burn (Auto-Burn - Pioneer Burn): 2,057,313.29 BNB
What You Need to Know About the BNB Burn
When BNB was launched in 2017, a commitment was made to remove 100 million BNB (half of its total supply) from circulation through a burning process and to eventually keep only 100 million BNB in circulation. This commitment is automatically honored each quarter and calculated according to the Auto-Burn formula.
The BNB Auto-Burn provides an independently auditable, objective process. The figures are reported quarterly, and the mechanism is independent of the Binance centralized exchange. On top of that, BNB Chain still continues to burn a portion of BNB Chain’s gas fees in real-time using the Real-Time-Burn mechanism.
To learn more about the BNB Burn, check out this article on Binance Academy.
Pioneer Burn to Protect Users
The Pioneer Burn Program also permanently removes an amount of BNB from circulation equal to provable lost funds by eligible BNB Chain users. This number is then counted towards the total quarterly burn figure. More details can be found here.
When it comes to the Pioneer Burn, BNB Auto-Burn, and Real-Time-Burn (BEP95) mechanisms, nothing has changed from the 21st BNB burn. Again, all of these are transparent and independently verifiable.
Since the introduction of BEP95, over 145,000 BNB has been burnt under this mechanism.
Cross-chain Bridge Hack
In the last quarter, there was an incident affecting the BNB burn. On October 7, 2022, the BSC Token Hub bridge was exploited, and an extra supply of roughly two million BNB was minted. This increased BNB’s maximum supply to 202 million, but 1.02 million was locked following a vote by the BNB Community’s validators and then burnt. And the rest will be burned through the usual burning process.
You can find the real-time BNB burning information on bnbburn.info, a third-party website built by the BNB community. The site is also a good resource for learning more about the current BNB circulation.
ERC20 BNB Migration
Since the launch of native BNB blockchains, there have been processes to migrate the ERC20 version of BNB to the native (BEP2) version.
However, some holders still held onto the ERC20 versions, totaling roughly 16m ERC20 BNB which remained unconverted during the early migration. Binance.com has kept accepting deposits of BNB in (older) ERC20 and only allowed withdrawals in BEP2. This allows the ERC20 version to accumulate on the exchange.
Most of the outstanding 16m ERC20 BNB have, in fact, now been deposited to Binance.com. As such, Binance will swap all the ERC20 BNB in its Ethereum wallets into BEP2 BNB. The process involves burning the ERC20 BNB and releasing the equivalent amount from the native BNB mint address.
Importantly, the burning of these ERC20 tokens will not be counted towards the quarterly burn, affect BNB’s overall circulation, or change the total circulation of BNB.
With 2023’s first burn completed, we turn to the rest of the year and its opportunities. Looking at market health, I hope and expect the industry to continue building for the long term and the path towards recovery.
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