#BNB The BNB burn system in Binance operates through a mechanism that periodically removes a portion of the total supply of BNB from circulation, with the goal of increasing its scarcity and potentially its value. Binance uses 20% of its quarterly profits to repurchase BNB from the market and then sends it to a burn address, where it is permanently destroyed.
A. How BNB burning works:
1. Profit Withdrawal.- Binance uses 20% of its quarterly profits to repurchase BNB from the market.
2. Token burning.- The repurchased BNB is sent to a burn address, where it is permanently destroyed.
3. Reduction of supply.- This process reduces the circulating supply of BNB, which may increase its value and scarcity.
B. Main features:
1. Autonomy.- The burning of BNB is automatic and integrated into the BNB Chain ecosystem.
2. Transparency.- Burn transactions are conducted at a publicly verifiable burn address on Binance Smart Chain (BSC).
3. Gradual reduction of supply.- The long-term goal is to reduce the total supply of BNB to 100 million tokens.
4. Link to the ecosystem.- The burn is directly related to the usage of the Binance Smart Chain (BSC) and the gas fees paid by users.
C. Benefits of BNB burning:
1. Increase in scarcity.- By reducing the circulating supply, the burning of BNB can increase the scarcity of the token.
2. Possible increase in value.- Scarcity may increase the value of the remaining BNB tokens in the long term.
3. Increased trust in the ecosystem.- The burning of BNB demonstrates Binance's commitment to the health and growth of the BNB Chain ecosystem.
In conclusion, the burning of BNB is a key mechanism for the future of BNB, gradually reducing its supply, increasing scarcity, and potentially driving up the token's value in the long term.
