$BNB and its Burn: The Secret of its Scarcity and Value
The burn of BNB is a fundamental process that distinguishes Binance Coin, driving its long-term value. It is not a random event, but an automatic and transparent mechanism designed to reduce the total supply of the token from 200 million to just 100 million coins.
How does it work? An intelligent algorithm calculates quarterly the amount of BNB to burn, based on the current price of the token and the activity of the BNB Chain. These tokens are sent to a "burn address" from which they can never be recovered, permanently eliminating them from circulation.
This strategy is key for a simple reason: scarcity. By reducing the available supply, and if the demand remains or increases, the value of the remaining BNB tends to appreciate. It is a deflationary policy aimed at benefiting those who hold the token. The transparency of this process, visible to everyone on the blockchain, reinforces trust in the sustainability and future of BNB. It is a masterstroke to secure its place in the crypto ecosystem.