Binance burned about 2.13 million BNB coins during the last three months thus bringing the total coins removed from circulation to about 50.2 million units.
Binance, a leading blockchain ecosystem with the largest centralized cryptocurrency exchange by Bitcoin’s daily traded volume and globally registered users, has announced the completion of the 25th quarterly auto-burn of its native coin BNB. According to the announcement, about 2,139,182 BNB, worth over $453 million, has been removed from the circulating supply for life. In addition to about 314 BNB coins burned through the pioneer burn program, which aims to reimburse Binance users who have innocently lost their coins to uncontrolled smart contracts, the total coins burned during the third quarter amounted to approximately 2,138,868 units.
Following the successful 25th BNB auto-burn program, the value of the underlying instrument gained by about 3 percent in the past 24 hours to trade around $213 on Monday. Additionally, the daily average trading volume for the Binance Coin jumped about 43 percent in the past 24 hours to about $400 million. The notable spike in Binance Coin’s on-chain metrics was due to the fact that the team led by Changpeng Zhao (CZ) committed to making it a deflationary asset to help investors fight fiat inflation.
— Binance (@binance) October 16, 2023
Binance BNB Auto-Burn
The BNB auto-burn is a strategy that was introduced to reward the holders’ community and at the same time attract new investors. Moreover, the Binance team has set a target of remaining about 100 million BNB units with the burnout rate accelerated by the heightened on-chain activities through the various blockchains supported. Notably, BNB is the native coin to the BNB Beacon Chain, the BNB Smart Chain, the opBNB L2s, and the BNB Greenfield blockchain. The BNB auto burn fetches a portion from each transaction fee, which is decided by the validators through a set function.
The Binance ecosystem also conducts the BNB Pioneer Burn Program which burned approximately 314 coins during the third quarter. As a result, the number of BNB left in total circulation after the 25th burn program was about 151.7 million, hence leaving about 51.7 million coins to be burned.
Through the quarterly BNB burns, the Binance team has managed to remain transparent by providing on-chain analytics of the process. Consequently, anyone can calculate the amount of BNB expected to be burned through the provided formula that involves blocks finalized and averaged price among other variables.
For instance, with an average price of $211, and about 2.6 blocks expected to be finalized during the fourth quarter, the Binance team anticipates obliterating approximately 2.18 million coins worth around $460 million during the 26th auto burn. Nonetheless, the figure is subject to several variables including the BNB spot price.