Key Takeaways
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.
BNB adopts two coin-burning mechanisms, which will eventually reduce its total supply by 50%. The first mechanism consists of burning a portion of the BNB spent as gas fees on the BNB Chain (introduced in the BEP-95). The second consists of quarterly BNB burning events.
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.
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.
For BNB, the goal of coin-burning events is to gradually reduce its total supply until it’s under 100 million BNB.
While there are multiple ways to burn cryptocurrency, some projects implement a specific burning feature as part of their protocol. For example, BNB included a smart contract burning function when it was first launched.
With the rise of decentralized finance (DeFi) protocols, coin burning has become more common in the blockchain space. Ethereum started burning the ETH base fee of all blockchain transactions after implementing the London hard fork upgrade in 2021.
To burn coins, a certain amount of crypto is sent to a smart contract or wallet address that cannot be used for making transactions and has no private keys. This means that once the coins reach the address, they will be lost forever and thus removed from the available supply.
For more details on how a coin burn works, check out What Is a Coin Burn?.
How Is BNB Burned?
BNB is the utility token that powers the BNB Chain ecosystem. The initial total supply was 200,000,000 BNB, but it is gradually decreasing through coin burns. The burning events will happen until half of the total supply is destroyed, reducing it to under 100,000,000 BNB.
There are two methods to burn BNB. The first consists of quarterly BNB burning events. The second was introduced in the BEP-95 and involves burning a portion of the BNB spent as gas fees on the BNB Chain.
BEP-95
BEP-95 is a BNB Evolution Proposal introduced in November 2021 to add a real-time burning mechanism to the BNB Chain. The smart contract automatically burns a portion of the gas fees collected by validators from each block. As more people use the BNB Chain, more BNB will be burned, effectively accelerating the burning process.
BNB Auto-Burn
The BNB Auto-Burn mechanism automatically adjusts the amount to be burned based on the BNB price and the number of blocks generated on the BNB Chain during the quarter. This means that if the BNB price drops, the amount of BNB burned will increase.
As of September 2025, a total of 32 BNB coin burn events have been completed. In total, 62,813,277.92 BNB coins were burned, reducing the initial 200M supply by 31.4% (the total supply is now at approximately 139,186,722 BNB). At the time of writing, the BNB Chain is burning approximately 67.5 BNB every day.
For more information, please visit BNBBurn.info (built by the BNB Chain community).
BNB Auto-Burn formula
BNB Auto-Burn formula is based on the on-chain data of total blocks generated and the average price of BNB:
B represents the BNB to be burned. N is the total number of blocks produced during the quarter. P is the average BNB price, and K is a constant price anchor (initially set at 1000).
Closing Thoughts
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 ecosystem. The BNB Auto-Burn will continue to enhance the BNB burning mechanisms, improving its deflationary properties and bringing more transparency to the community.
Further Reading
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