BNB Chain Executes $1 Billion Token Burn, Reducing Supply to 139.3 Million

The BNB Foundation has conducted its 32nd quarterly burn of 1.6 million BNB tokens, valued at over $1 billion.

The total amount of assets removed from circulation was 1,595,599 BNB, translating to approximately $1.024 billion at the time of the burn. Following this event, the overall supply of BNB decreased to 139.3 million.

This token burn is part of the Auto-Burn mechanism, which aims to reduce the asset’s supply to 100 million. The amount burned is influenced by the price of BNB and the number of blocks generated in the network during the quarter.

At the time of this writing, the token is trading at $670.85, reflecting a 1.4% increase over the past day, according to CoinGecko.

BNB Chain ranks fourth among networks in the DeFi ecosystem based on TVL (Total Value Locked).

The venture firm YZi Labs, associated with former Binance CEO Changpeng Zhao, along with 10X Capital, is developing the BNB Treasury Company. Shares of this new entity are planned to be listed on a U.S. stock exchange in the future.

The initiative aims to provide retail and institutional investors in the U.S. with access to the BNB Chain ecosystem. Representatives from 10X Capital noted that these users have limited options for investing in BNB. The new structure is intended to serve as a gateway between them and decentralized finance.

A team of top executives will spearhead the project, including David Namdar, co-founder of Galaxy Digital; Russell Read, former CIO of the CalPERS investment fund; and Saad Nadja, former director at Kraken.

10X Capital will act as the asset manager for the new company. To raise capital and purchase BNB, it has formed partnerships with Cohen & Company Capital Markets and Clear Street LLC. Previously, 10X Capital was involved in the creation of a similar treasury company, Nakamoto (NAKA), which has shares traded on Nasdaq.

Ella Zhang, head of YZi Labs, pointed out that BNB Chain is one of the most widely used blockchain ecosystems. She stated that increasing institutional participation will benefit a broad range of users.

An announcement regarding the conclusion of the funding round is expected in the coming weeks.

Additionally, it is worth mentioning that in April, BNB Chain developers implemented a hard fork Pascal, aimed at enhancing the EVM compatibility of the blockchain.

In June, the network’s team successfully completed the Maxwell upgrade.