The deflationary mechanism of $BNB BNB is a strategy designed by Binance to enhance the value and scarcity of its native token BNB. It primarily reduces the circulating supply by regularly burning BNB, with the goal of gradually decreasing the total supply from 200 million to 100 million. Specifically:

- Quarterly Burn: Binance will use 20% of its profits to repurchase BNB from the market every quarter, and then send it to a dedicated burn address, permanently removing it from circulation. This quarterly burn mechanism is predictable, usually occurring after the end of each quarter, and the specific time and amount of the burn are announced to the community in advance, increasing transparency and community trust.

- Automatic Burn Mechanism: In addition to the quarterly burn, BNB has also introduced an automatic burn mechanism. This mechanism dynamically adjusts the amount of BNB to be burned each quarter based on activity and price levels on the BNB chain. When the market price of BNB drops, a higher burn rate is triggered to offset price fluctuations and enhance market stability. Additionally, a portion of transaction fees on the BNB chain is also used to burn BNB, further reducing the circulating supply. $BNB