BNB Chain has completed the 22nd BNB destruction, which is also the first quarterly destruction since entering 2023. This destruction still includes two parts: "automatic destruction" and "BNB anti-black hole plan".

The following is the relevant data and information of this destruction:

  • Automatic destruction (total BNB destroyed): 2,064,494.32 BNB

  • Equivalent value: US$575,458,677.66

  • BNB destroyed transaction ID (TXID): View transaction

Note: The above destruction data includes 7,181.03 BNB destroyed from the “BNB Anti-Black Hole Plan”, so the actual number of BNB destroyed is 2,057,313.29 BNB

About BNB Burning Mechanism

Since BNB was launched in 2017, we have been committed to removing 100 million BNB (half of the total supply) from circulation through quarterly burns. This commitment is automatically fulfilled every quarter, and the number of tokens destroyed is calculated according to the Auto-Burn formula.

BNB Auto-Burn provides an independent, independently verifiable, and objective destruction process. These data are updated quarterly and are independent of the Binance centralized exchange. In addition to quarterly destruction, BNB Chain still uses the Real-Time-Burn mechanism to destroy part of the BNB Chain mining fees in real time.

You can learn more about the BNB burn mechanism in this article from Binance Academy.

Protecting users through the BNB Anti-Black Hole Program

In addition, Binance has also permanently removed an amount of BNB from circulation through the BNB Pioneer Burn Program, which is equal to the provable financial losses of eligible BNB Chain users due to operational errors. For more details, please click here.

In terms of the BNB anti-black hole plan, automatic destruction, and real-time destruction (BEP95) mechanism, there is no change compared to the 21st BNB destruction. All mechanisms are transparent and independently verifiable.

Since the launch of the BEP95 destruction mechanism, more than 145,000 BNB have been destroyed under this destruction mechanism.

Cross-chain bridge hacking incident

In the past quarter, there was an incident that affected the destruction of BNB - the BSC Token Hub hack on October 7, 2022. The incident resulted in approximately 2 million BNB being minted additionally, increasing the maximum supply of BNB to 202 million, but after a vote by the BNB validator community, 1.02 million were locked and then destroyed. The rest will be destroyed through normal procedures.

You can learn about the real-time destruction information of BNB through the following website bnbburn.info. bnbburn.info is a third-party website built by the BNB community. The website also provides a full explanation of the current BNB circulation.

Migration of ERC20 BNB

Since the launch of the BNB native blockchain, the migration of the ERC20 version of BNB to the native (BEP2) version has been ongoing.

However, some holders still hold the ERC20 version of BNB, with a total of about 16 million ERC20 versions of BNB remaining unconverted during the early migration period. Binance Exchange has always supported BNB deposits on the ERC20 network and only allows withdrawals through the BEP2 network, allowing the ERC20 version of BNB to accumulate on the exchange.

In fact, most of the 16 million ERC20 BNB that have not been migrated are now stored in Binance. Therefore, Binance will convert all ERC20 BNB in ​​its Ethereum wallet into BEP2 BNB. This process involves destroying ERC20 BNB and releasing an equal amount of BNB from the BNB native minting address.

Importantly, the destruction of these ERC20 tokens will not be counted towards the overall quarterly destruction figures and will not impact the overall circulating supply of BNB or the total BNB issuance.

With the first quarterly destruction completed in 2023, we will look to the new year and opportunities. Looking at the entire market, I hope the industry can move towards long-term construction and look forward to the market's path to recovery.

Keep building!

CZ