The BNB Foundation has completed its 33rd quarterly token burn, permanently removing 1,441,281 BNB from circulation. At the time of the event, the tokens were valued at approximately $1.208 billion. This latest burn reduces the total supply of BNB to 137,738,379 as it moves toward its long-term goal of 100 million tokens.

Token burns are a core deflationary feature of the BNB Chain, designed to reduce the total supply over time, increase scarcity, and support the ecosystem’s economic model. The native coin, BNB, is integral to the network, powering the BNB Smart Chain (BSC), opBNB Layer 2 solutions, and BNB Greenfield. It serves as a governance token for on-chain decisions and is used to pay for transaction fees across the network.

How the BNB Burn Works

BNB employs a two-part system to reduce its supply. The main quarterly event uses an Auto-Burn mechanism that calculates the number of tokens to be destroyed based on the price of BNB and the number of blocks produced during the quarter. This formula ensures the process is transparent, predictable, and operates independently of the Binance centralized exchange. The tokens are sent to a permanently inaccessible “blackhole” address.

In addition to the quarterly burn, BNB Chain has a real-time burn mechanism linked to network gas fees. A fixed portion of the fees collected by validators in each block is automatically burned. Since this system was introduced, it has removed approximately 276,000 BNB from circulation, dynamically reducing the supply as network activity increases.

Why This Matters for the Ecosystem

Regular token burns are a key part of maintaining BNB’s value proposition while supporting the broader BNB Chain ecosystem. Developers building decentralized applications (DApps), games, and NFT platforms rely on BNB for transaction fees, making the coin central to daily network activity. By providing a transparent and predictable deflationary schedule, these burns offer stability and reassurance to both retail users and institutional participants invested in the network’s growth.