A coin burn within thecrypto industry is a permanent mechanism to remove coins from circulation. Most cryptocurrency projects, like Binance, periodically do this in order to create value for their digital asset and have a deflationary effect.
So far, Binance has burned over 38 million tokens through its quarterly burns. Its goal is to destroy up to 100 million BNB tokens, which accounts for 50% of its circulating supply.
There are two coin-burning mechanisms that BNB has. One is when a portion of the tokens used for transaction fees gets burned on the BNB Chain. The other quarterly event is called the BNB burning event.
The quarterly burn event was, in the past, only based on revenue from Binance’s centralized exchange. However, now with the new BNB Auto-Burn program, we will use a formula to calculate how many tokens will be burned using data gathered from the number of blocks produced on both Binance Smart Chain and its average dollar price during that quarter.
So far, Binance has completed 20 BNB coin burn events. In total, 38,683,447.66 BNB tokens have been destroyed–reducing its original 200 million supply by 19.34%.