Before BEP-95, BNB relied primarily on periodic quarterly burns to reduce its circulating supply. BEP-95 shifted this to a continuous, block-by-block process, making the burning more transparent and predictable. The proposal was implemented on the BNB Chain in November 2021 and remains active today.
The technical implementation splits gas fees between two smart contracts. The System Reward Contract receives 1/16 of gas fees, capped at 100 BNB, to subsidize cross-chain packages. The ValidatorSet Contract receives the remainder and distributes it daily to delegators and validators. When a validator finalizes a block, the burn logic calculates the amount using the formula: burnRatio multiplied by gasFee. The resulting BNB is transferred to the burn address and destroyed.
Since its launch, over 292,000 BNB has been burned through the BEP-95 mechanism. The burns will continue even after the BNB Chain reaches its target of 100 million BNB in total supply, providing ongoing deflationary pressure.
The burn ratio is not permanently fixed. BSC validators can vote to change it through governance proposals on the BNB Chain. Any community member can submit a proposal with a minimum deposit of 2,000 BNB. All BNB staked behind a proposal is returned after the vote concludes. A quorum of 50% is required for a proposal to pass, and approved changes take effect immediately via cross-chain communication.
This governance mechanism allows the BNB Chain community to adjust the burn rate in response to changing network conditions. However, no proposal has successfully changed the ratio from its initial 10% setting as of 2026.
By reducing the supply of BNB on a continuous basis, BEP-95 is designed to create deflationary pressure on the token. The mechanism complements the broader BNB Auto-Burn program, which conducts periodic large-scale burns based on trading volume. Together, these two mechanisms have removed millions of BNB from circulation.
The real-time nature of BEP-95 also means that higher network activity leads to more BNB being burned, creating a direct link between usage of the BNB Chain and the rate at which supply is reduced. This may incentivize long-term holding and network participation, though the actual effect on price depends on a range of market factors beyond burning alone.