As a seasoned cryptocurrency researcher with years of experience under my belt, I must say that the BNB Foundation’s commitment to regular token burns is nothing short of impressive. The strategic move aims to introduce scarcity and potentially boost the long-term value of BNB, much like Bitcoin’s halving events.
Today, it was announced by the charitable organization managing the network, known as the BNB Foundation, that they have successfully carried out their 29th quarterly destruction of BNB tokens. A total of 17,727,123.63 units, equivalent to approximately $1.07 billion, were transferred to an irretrievable address, often referred to as a “black hole” destination.
After the mainnet launch on April 18, 2019, the Foundation began destroying digital assets to limit the maximum supply of BNB to 100 million. This approach is intended to create a deflationary impact, potentially increasing scarcity and, in turn, the value of BNB over time, much like how Bitcoin‘s halving events affect its value.
BNB Foundation Burns over $1 Billion of BNB
The rate at which tokens are burned each time is influenced by the current market value of BNB and the number of blocks produced on the BNB Smart Chain within a given quarter. This method enables the burning process to adjust to changes in BNB’s price and activity levels on the BSC, making it responsive to both market trends and network usage patterns.
For the 29th quarterly burn, data from BscScan, a blockchain explorer, shows the Foundation completed the burn when the price of BNB traded around $576. The last quarter burn in July saw the digital asset trading around $594. At the time, the Foundation destroyed approximately 1,643,699 BNB, valued at $971 million.
Although a significant amount of BNB tokens have already been destroyed, the Binance Smart Chain (BSC) network requires burning over 43 million more BNB to decrease the token’s circulating supply. As the native currency of its blockchain ecosystem, BNB plays an essential role in powering all transactions and activities within the BSC network, as well as the opBNB L2s and BNB Greenfield chain.
This digital asset functions not only as a regular asset but also acts as a voting token for the Binance Smart Chain (BSC) Network. Holders have the privilege to take part in decisions about network improvements, including the addition of new features.
A Real-time Burn Mechanism
Beyond their regular quarterly burn, the BNB Foundation also employs an immediate burn system tied to gas fees. This approach, as explained by the nonprofit, is intended to destroy a predetermined proportion of gas fees produced by network validators at a steady pace. By doing so, the Binance Smart Chain (BSC) has incinerated approximately 242,000 BNB since its implementation.
As an analyst, I can share that the Foundation implemented additional measures like the Pioneer Burn Program, specifically designed to help users recover their misplaced BNB and related digital assets, which were inadvertently lost due to a genuine oversight. Instead of opting for straightforward token creation or absorbing the loss directly, this charitable organization compensates for these recovered tokens through its routine quarterly burn events.
Read More
- DEXE PREDICTION. DEXE cryptocurrency
- ARB PREDICTION. ARB cryptocurrency
- FLOKI PREDICTION. FLOKI cryptocurrency
- PEOPLE PREDICTION. PEOPLE cryptocurrency
- From Season 4 Renewed With Release Date Window & Episode Count
- SEI PREDICTION. SEI cryptocurrency
- Why Is Randy Moss Wearing Glasses? Health Update
- XRD PREDICTION. XRD cryptocurrency
- ZEN PREDICTION. ZEN cryptocurrency
- RAY PREDICTION. RAY cryptocurrency
2024-11-01 14:00