BNB Coin’s circulating supply is being significantly reduced through BEP-95.
BNB Chain
BNB Chain’s native coin, $BNB is now the only coin in the top 10 cryptocurrencies by market cap that is deflationary. $BNB currently sits at the fourth position with a total market capitalization of $69 billion, trailing behind Bitcoin ($BTC), Ethereum ($ETH), and Tether ($USDT).
A total of 37 million $BNB has been taken out of circulation thus far through its burning mechanism. On April 19, a total of 1,830,382.48 $BNB valued at $741,840,738.874 was burnt.
Changpeng Zhao (CZ) the Chief Executive Officer of Binance in his Twitter post said:
“$BNB is deflationary. If you don’t know what that means, you lack basic financial knowledge to get lucky in this world. Harsh but true. Time to learn.”
CZ is straightforward in a claim here that is designed to make users think about the long term prospects of $BNB.
The $BNB community aims to reduce the total circulating supply by half. The initial circulating supply was fixed at 200 million. BNB Coin is used to power the BNB Chain and it is also a popular utility token that can be used for a wide range of applications.
BEP-95
$BNB is not an inflationary cryptocurrency. Unlike Bitcoin ($BTC) or Ethereum ($ETH), there are no mining rewards. The gas fee is the only reward for its validators on the BNB Chain. Gas fees are collected on each block and distributed to two smart contracts which are the System Reward Contract and ValidatorSet Contract.
The burning mechanism is introduced to the ValidatorSet Contract whereby its validators can change the perimeters of the ‘burn ratio’ through a proposal vote based on their amount of $BNB staked.
Source : bsc.news
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