BNB Chain has completed its 37th quarterly BNB token burn, removing approximately 1.646 million BNB worth about $1 billion at the reference price. The event continues the network’s quarterly Auto-Burn process, which has a long-term target of reducing total supply to 100 million tokens.

The figures reported by BNB Chain describe both the quantity removed and its reference valuation: approximately 1.646 million tokens were burned, with their dollar value calculated at the reference price.

How the quarterly BNB token burn is calculated

Using BNB’s price together with the total number of BNB Smart Chain blocks generated in the quarter, the Auto-Burn mechanism calculates how much to eliminate. Both price and network block production therefore feed into the calculation for each quarterly event.

The quarterly BNB token burn forms part of a supply-reduction mechanism whose stated goal is to bring total BNB supply down to 100 million tokens. That figure is the long-term supply target, rather than the amount designated for any single quarterly burn.

BNB Chain also burns a portion of gas fees through BEP-95. Alongside the quarterly Auto-Burn, this fee-based mechanism provides another route for removing BNB from supply: part of the network’s gas fees is burned through the proposal.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.