Coin burning is a mechanism used to remove coins from circulation, reducing the total supply permanently. Many cryptocurrency projects perform periodic coin burns to create a deflationary effect.
Previously, the quarterly BNB burns were based on the BNB trading volume on the Binance exchange. But in December 2021, Binance announced that the Quarterly Burn would be replaced by the new BNB Auto-Burn.
The BNB Auto-Burn mechanism will automatically adjust the amount of BNB to be burned based on the BNB price and the number of blocks generated on BSC during the quarter. This offers greater transparency and predictability to the BNB community.
What is a coin burn?
A coin burn refers to the process of permanently removing cryptocurrencies from circulation to reduce the total supply of the coin. In other words, coins are destroyed and can no longer be used in trading or anything else.
By making the coin scarcer, coin burning aims to create a deflationary effect and potentially increases the crypto’s valuation to benefit its holders. For BNB, the goal of coin-burning events is to gradually reduce its total supply until it’s under 100 million BNB.
How is BNB burned?
Previously, the quarterly BNB burns were based on the BNB trading volume on the Binance exchange. But in December 2021, Binance announced the new BNB Auto-Burn. The BNB Auto-Burn mechanism automatically adjusts the amount of BNB to be burned based on the BNB price and the number of blocks generated on BSC during each quarter. This offers greater transparency and predictability to the BNB community.
BNB Quarterly Burn
As of January 2022, there were 17 BNB burn events. A total of 33,199,679 BNB were burned, which represents 16.59% of the total supply.
Approx. BNB Price
Approx. USD Value
% of Total Supply
The BEP-95 burning mechanism
What is BNB Auto-Burn?
As mentioned, BNB Auto-Burn will automatically adjust the burn amount based on BNB’s price and supply-demand dynamics. This means that if the BNB price drops, the amount of BNB burned will increase.
BNB Auto-Burn is both objective and verifiable. It aims to provide greater transaction transparency and predictability. Unlike the Quarterly Burn, BNB Auto-Burn is independent of the BNB trading volume on the Binance exchange. Instead, it uses on-chain information from BSC to calculate the amount to burn.
Once the total circulating supply of BNB falls below 100 million, the BNB Auto-Burn will stop. However, the BEP-95 mechanism will continue to burn BNB. BNB Auto-Burn follows a formula to burn BNB automatically, which is based on the BSC on-chain data of total blocks generated and the average price of BNB:
How to check the BNB Auto-Burn history?
Since its launch in 2017, BNB has evolved in many ways as a utility token. The blockchain space is growing fast, and so is the BNB and BSC ecosystem. The new BNB Auto-Burn will further enhance the BNB burning mechanisms, improving its deflationary properties and bringing more transparency to the community.