Is BNB buyback just money moving from one hand to the other? The truth about its burn mechanism
Many rumors claim that BNB buybacks simply use the platform’s profits to purchase tokens held by CZ, amounting to cashing out from one pocket to another. In reality, this applies the old rules from the 2017 white paper to the present day and overlooks how on-chain burns actually work.
Under BNB’s original plan, 20% of the platform’s profits were used to buy back and burn tokens, with the goal of reducing the total supply from 200 million to 100 million. After switching to the Auto-Burn mechanism in late 2021, the number of tokens burned each quarter was no longer directly tied to exchange profits. Instead, it was calculated based on the average BNB price and the number of blocks produced on BSC during that quarter.
Burned tokens are sent directly to a “black hole” address, and the on-chain records are publicly verifiable. There is also the BEP-95 mechanism, which burns a portion of the gas fees in every block. By mid-2026, more than 60 million BNB had been burned in total, reducing the supply from 200 million to approximately 133 million.
Once tokens enter a black hole address, they can no longer participate in normal trading or circulation, meaning the market supply is genuinely reduced. This is entirely different from the claim that “coins held by CZ are bought back and the funds just circulate internally.”
The old buyback rules have long since been updated, and simply repeating the old narrative can easily cause misunderstandings. The burn data is verifiable on-chain at every stage and is a key pillar of BNB’s deflationary model.
#BNB #Binance #AutoBurn
Many rumors claim that BNB buybacks simply use the platform’s profits to purchase tokens held by CZ, amounting to cashing out from one pocket to another. In reality, this applies the old rules from the 2017 white paper to the present day and overlooks how on-chain burns actually work.
Under BNB’s original plan, 20% of the platform’s profits were used to buy back and burn tokens, with the goal of reducing the total supply from 200 million to 100 million. After switching to the Auto-Burn mechanism in late 2021, the number of tokens burned each quarter was no longer directly tied to exchange profits. Instead, it was calculated based on the average BNB price and the number of blocks produced on BSC during that quarter.
Burned tokens are sent directly to a “black hole” address, and the on-chain records are publicly verifiable. There is also the BEP-95 mechanism, which burns a portion of the gas fees in every block. By mid-2026, more than 60 million BNB had been burned in total, reducing the supply from 200 million to approximately 133 million.
Once tokens enter a black hole address, they can no longer participate in normal trading or circulation, meaning the market supply is genuinely reduced. This is entirely different from the claim that “coins held by CZ are bought back and the funds just circulate internally.”
The old buyback rules have long since been updated, and simply repeating the old narrative can easily cause misunderstandings. The burn data is verifiable on-chain at every stage and is a key pillar of BNB’s deflationary model.
#BNB #Binance #AutoBurn