As part of the 37th quarterly token burn, BNB Chain destroyed 1646196.44 BNB worth approximately $1,197 billion, while the cryptocurrency trades around $725 and continues to struggle as it tries to break through key technical resistance levels.
According to a statement from the BNB Foundation dated October 19, the token burn took place directly on the BNB Smart Chain and reduced the total number of tokens to 131 512 085. The Foundation recorded these figures at 10:05 a.m. UTC, and the network continues its supply reduction program down to 100 million tokens.
At the time of publication, BNB was trading at approximately $725,45, having gained about 0.5% over 24 hours. Its market capitalization stood at around $95.42 billion, placing it fourth among cryptocurrencies, while daily trading volume reached approximately $705.68 million.
The latest decline was not accompanied by any significant price growth on the available market. BNB remains below the $750 level, identified in the provided daily technical analysis as an important resistance zone.
BNB Chain burned more tokens than last time
The October burn destroyed more tokens than the previous burn in July, when the BNB Foundation destroyed 1 615 827,795 BNB worth approximately $931.7 million.
The value of the October operation rose by approximately $265.6 million, or 28.5%, compared with July. The difference reflects both the additional tokens destroyed and the higher BNB price used to value the latest burn operation.
According to data published in July, the token price at the time of the operation was approximately $576,61, compared with roughly $727.34 in October. These are calculated estimates based on the Foundation's statements, not on average market prices for the respective quarters.
As previously reported, the 36th quarterly supply reduction in July left approximately 133.17 million BNB in circulation. The October announcement brought the total supply down to 131.51 million, confirming the planned reduction.
The Foundation conducts the quarterly token burn using the Auto-Burn mechanism, which determines how many BNB to remove using a set formula. This mechanism operates independently of the centralized exchange Binance and does not represent a new purchase of tokens on the open market worth $1,197 billion.
BNB supply is approaching the target of 100 million
The supply reduction program run by the BNB Foundation is designed to continue until the total supply reaches 100 million BNB.
After the latest event, the number of tokens above the target stands at approximately 31.51 million. Reaching the goal will require removing roughly 24% of the current supply.
The October burn operation alone accounts for approximately 1.24% of the total supply that existed immediately before the operation began, calculated based on the announced burn amount and the remaining balance.
BNB Chain uses an auto-burn formula that takes into account market prices and the parameters of the relevant quarter. The system determines the volumes of tokens to burn according to its published rules, rather than requiring a separate decision on how many tokens to destroy each quarter.
The Foundation explained that the Lorentz and Maxwell network upgrades changed the block production speed on the BNB Smart Chain. Therefore, the parameters used in the burn formula were adjusted to preserve the intended mechanism as block production accelerated.
In line with the network's technical approach, the calculation takes into account the length of each quarter along with the base price of BNB. Future token reductions will depend on the relevant inputs, so the number of burns needed to reach the target supply is not fixed.
A separate real-time mechanism, BEP-95, destroys a portion of the fees collected on the BNB Smart Chain. The burn ratio is set by validator governance, allowing the volume of removed funds to vary depending on transaction activity.
Each quarter, the Foundation sends burn tokens to the designated address: 0x00000000000000000000000000000000000dEaD. The quarterly burn takes place directly on the BNB Smart Chain, ever since the BNB Chain Fusion process changed the network's previous structure.
Read also:
