In what is Binance’s first quarterly BNB burn of 2023, the world’s largest cryptocurrency exchange has completed the 22nd BNB burn. Also a part of its Pioneer Burn Program, the 22nd BNB burn is valued at $575,458,677.66, burning 2,064,494.32 BNB.
Sharing the breaking on-chain BNB burn news, Binance CEO Changpeng Zhao or CZ Binance tweeted:
In a Binance blog post, CZ Binance elaborates that the Binance team initiated a BNB (ERC20) to BNB (BEP2) conversion only to release BEP2 and burn ERC20. He also shared the Transaction ID (TXID) for the BNB burn. Subsequently, CZ Binance also shared a confirmed etherscan.io TXID in a tweet.
While the BNB burned from the Pioneer Burn Program is 7,181.03 BNB, the Real Burn Auto-Burn – Pioneer Burn total is 2,057,313.29 BNB. The BNB burn program, CZ states, began in 2017 with a commitment of keeping only 100 million BNBs in circulation, while quarterly burning the rest 100 million BNBs.
Pursuant to that, via the Auto-Burn formula, the BNB burn takes place. CZ reminds that the BNB Chain also burns some of BNB Chain’s gas fees in real-time via the Real-Time-Burn mechanism. An extra 1.02 million BNB supply came into existence after a cross-chain BNB bridge hack on October 7, 2022. But it got locked and then burnt per the BNB Community validators’ vote, says CZ.
As for the ERC20 to BEP2 migration, CZ Binance states
some holders still held onto the ERC20 versions, totaling roughly 16m ERC20 BNB which remained unconverted during the early migration. Binance.com has kept accepting deposits of BNB in (older) ERC20 and only allowed withdrawals in BEP2. This allows the ERC20 version to accumulate on the exchange.
CZ Binance assures
Binance will swap all the ERC20 BNB in its Ethereum wallets into BEP2 BNB. The process involves burning the ERC20 BNB and releasing the equivalent amount from the native BNB mint address.
Lastly, the Binance CEO clarifies the ERC20 tokens’ burning will not form a part of the quarterly burn, or impact the overall circulation of BNB.