The number of BNB to be destroyed is determined by the number of transactions on the trading platform within 3 months. After each quarter, Binance burns Binance Coin based on overall trading volume.

However, it seems that a significant number of people still have difficulty understanding how token burning is performed. To this end, we have launched this article introducing the burn function and the Binance Coin quarterly burn event.

How does it work?

In general, token burning events occur in the following order:

1. As long as the destroy function is called, it means that the cryptocurrency holder wishes to destroy a specific number of Token.

2. The smart contract then verifies that the person has tokens in their wallet and that the said amount of tokens is valid. The destruction mechanism only allows positive quantities.

3. If there are not enough tokens in the person's wallet or the said amount is invalid (e.g. 0 or -5), the burn function cannot be executed.

4. If there are sufficient amounts, the tokens will disappear from the wallet. The total supply is then updated, indicating that the token is permanently destroyed.

If the token is destroyed by executing the destruction function, the token will be completely destroyed and cannot be recovered. Thanks to blockchain technology, proof of destruction can be easily verified through a blockchain browser.

In other words , the BNB contract has a built-in destruction function, which can be used by everyone at any time. By calling this function, a specific number of tokens can be permanently removed from the circulating supply. As mentioned earlier, every token burning event is recorded as a blockchain transaction. The burning mechanism is open and transparent, andeveryone can verify whether the token has been successfully burned.

When conducting a quarterly token destruction event, Binance will issue an official announcement stating the amount of BNB destroyed (based on the number of transactions in that quarter) based on quantity). All ERC-20 BNB token burning transactions can be verified through Ethereum blockchain explorers such as Etherscan. The destruction transaction is open, transparent and irrevocable and will be permanently recorded in the blockchain.

You can view the details of the destruction transaction through Etherscan's Enter data box.

Click "Decode input data" to view the amount of BNB that has been destroyed. The number contains 18 decimal places. Therefore, the number of BNB burned in this example is 1,623,818.

Current Binance burning function

Since the launch of BNB Beacon Chain, ERC-20 BNB tokens have been gradually replaced with native Binance Coin (BNB BEP-2). This means that the token burning event has been transferred from the Ethereum network to the BNB Beacon Chain.

It is worth noting that all ERC-20 BNB tokens burned have been "copied" to the BNB Beacon Chain, ensuring the total supply The quantity remains consistent. Therefore, the 11,654,397 ERC-20 BNB tokens previously destroyed in the Ethereum network were also destroyed on the BNB Beacon Chain (completed immediately after the mainnet went online). The specific burning transaction can be viewed in the BNB Beacon Chain browser. Additionally, you can view the total supply of BNB.

The current BNB destruction mechanism no longer relies on smart contracts, but executes specific commands in the BNB Beacon Chain. For details, please visit the BNB Beacon Chain documentation page.

As of April 2022, Binance has completed a total of 19 BNB destruction events. The total amount of BNB destroyed reached 36,723,852.37 pieces, and the total supply dropped by 18.36% (the current supply is 163,292,674.61 pieces).

BNB destruction record (quarterly token destruction ).