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What Is BNB Auto-Burn?

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 reduce its total supply by 50% in the long term. The first mechanism consists of burning a portion of the […]

Instructor Gergő Várhegyi
Updated March 23, 2022

About Course

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 reduce its total supply by 50% in the long term. The first mechanism consists of burning a portion of the BNB spent as gas fees on the Binance Smart Chain (BSC) (introduced in the BEP-95). The second consists of quarterly BNB burning events.

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.

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Course Content

What Is BNB Auto-Burn?
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 reduce its total supply by 50% in the long term. The first mechanism consists of burning a portion of the BNB spent as gas fees on the Binance Smart Chain (BSC) (introduced in the BEP-95). The second consists of quarterly BNB burning events. 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?
  • How is BNB burned?
  • BNB Quarterly Burn
  • The BEP-95 burning mechanism
  • What is BNB Auto-Burn?
  • How to check the BNB Auto-Burn history?
  • Closing thoughts

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