Binance Chain burns $742 million worth of BNB in 19th quarterly burn

In Q1 2022, the Binance Chain, one of the world's most extensively utilized blockchains, burned 1,839,786.261 BNB, the Blockchain's native cryptocurrency, valued around $742 million. This is the 19th installment in Binance Chain's quarterly token burn program, which started in the third quarter of 2017.

Since the debut of the Binance Chain and its native token, BNB, in 2017, the team has pledged to burn a total of 100 million BNB, or half of the total supply, to remove them from circulation. The Auto-Burn formula was used to automatically calculate the number of tokens removed for this quarter.

Binance launched and implemented its first-ever auto-burn program, the BEP-95, in the fourth quarter of 2021, which calculates the number of BNB tokens to be burned using a formula based on the total number of blocks produced on the Binance Chain and BNB's average dollar-denominated price during the quarter.

When cryptocurrency tokens or coins like Bitcoin, Ethereum or Nature Vault are purposefully and permanently removed from circulation, they are referred to as "burned." The development team behind a cryptocurrency asset is usually in charge of token burning. It can be done in a number of methods, the most frequent of which is to send the coins to a so-called "eater address," which has its current balance publicly viewable on the blockchain but no access to its contents.

Burning may entail the project's developers purchasing tokens from the market or burning a portion of the supply currently accessible to them. Burning can be done with different goals in mind, but most often it is used for deflationary purposes:

the decrease in the circulating supply tends to drive an asset’s price upward, incentivizing traders and investors to get involved. Another important use case for token burning is to maintain the price peg of stablecoins (cryptocurrencies whose value corresponds to another asset, like the U.S. dollar).