The next BNB Burn won't be until the next quarter. Now that the 21st burn has been completed, BNB holders are looking closely at the Binance burn schedule for the 23rd BNB Burn.
This regularly scheduled event saw a large amount of Binance Coin destroyed by top cryptocurrency exchange Binance. It is just one of many cryptocurrencies to burn coins, with Shiba Inu Burns being popular with the SHIB community and the Luna Classic burn.
Here's all you need to know about the latest BNB Burn, and what comes next.
When Was The 22nd BNB Burn?
The 22nd BNB burn took place on January 17 2023 destroying 2,064,494.32 BNB, over $575 million worth of BNB.
This is similar to the 20th BNB burn which destroyed 2,065,152.42 BNB.
Binance confirmed the latest burn on Twitter, sharing the full transaction details. It cost 0.002 BNB for the burn to take place.
During the 16th BNB burn on July 18, 2022, Binance destroyed 1,296,728 BNB, worth over $393 million.
When Is The Next BNB Burn?
The next BNB Burn - the 23rd burn - should take place at the end of Q2 2023.
The amount destroyed in the next BNB burn depends on the transactions on the BNB Chain. While the 22nd burn may have been hit by this reduction in crypto prices and transactions, it is too early to speculate on how much BNB will specifically be destroyed.
However, the BNBBurn site that uses the auto-burn algorithm estimates over 2,000,000 BNB could be destroyed.
During the 17th BNB burn in October 2021, Binance destroyed 1,335,888 BNB worth $639 million.
When Was The 21st BNB Burn?
The 21st BNB burn took place on October 13 2022 destroying 2,065,152.42 BNB, over $546 million worth of BNB.
Binance confirmed the latest burn on Twitter, sharing the full transaction details. It cost 0.002 BNB for the burn to take place.
How Much BNB Is Burned?
The Binance BNB burn mechanism changed drastically for the 18th burn. It is now an auto-burn that runs on a specific formula. The main difference is that it no longer reflects Binance's profits, but is based on BNB's on-chain activity.
According to Binance, the new burn mechanism is "both objective and verifiable", and also provides flexibility as supply and demand for BNB changes.
Aside from this, Binance also burns in real-time, destroying around 101,000 BNB following its Bruno upgrade.
Binance's original whitepaper stated that the exchange would burn 20% of its quarterly profits in the BNB burn. The whitepaper was changed in 2019 to remove such a reference, meaning it is no longer clear how much BNB will be burned, or what proportion of profits this will be.
One explanation for these changes comes from the accelerated BNB burn. Binance has promised to burn 100,000,000 BNB - or 50% of the total supply. It now expects to take 5-8 years, rather than 27 years, according to CZ.
"Initially, the speed of the burn was associated with trading volumes on Binance," said CZ after the 14th BNB Burn. "This turns out to be somewhat “slow”, or at least slower than we originally anticipated."
"One negative side effect may be that you won’t be able to use the burn number to reverse calculate Binance revenues, etc. You may still be able to infer that our revenues are lower than a certain number. But it will be a rough guess at best."
What is a BNB Burn?
The BNB burn is a quarterly event whereby Binance buys back BNB and then burns, or destroys, this BNB. This will continue until Binance has burned 100,000,000 BNB.
Binance Coin is not the only cryptocurrency subject to coin burning. In May 2021, Ethereum co-founder Vitalik Buterin burned 90% of his SHIB - over 410 billion SHIB worth over $7bn on the day of transfer - gifted to him by the Shiba Inu founder.
Following the implementation of EIP-1559, Ethereum now also burns ETH at a high rate.