The recent BNB burn at the beginning of the year just concluded, and the numbers are quite shocking. 1.37 million tokens were directly burned, which at the time’s price equates to a staggering $1.27 billion. Interestingly, this amount is 70,000 tokens less than the previous quarter. So some people are starting to ask, is the deflationary momentum slowing down? What underlying logic is behind this burn?

Let's start with the basics. BNB's quarterly burn isn't decided arbitrarily by a team, but is driven by the Auto-Burn automatic mechanism. This system is simple yet clever — it looks at only two key indicators: on-chain block output and the average token price for the quarter. In other words, the more active the ecosystem and the more stable the token price, the greater the total USD value of the burn. The $1.27 billion burn this time actually reflects the strong market performance since the beginning of the year, just masked by the appearance of "reduced quantity."

Many people become nervous when they see the burn amount decrease by 5% quarter-over-quarter, thinking that the deflationary pace is slowing down. But this is actually falling into a common numerical trap. The key point is — BNB's burn mechanism is anchored to USD value, not a fixed token quantity. A concrete example makes this clear. Suppose in one quarter, the token price is $500; burning $100 million requires 200,000 tokens. When the price surges to $900, burning the same $100 million only requires about 111,111 tokens. The quantity looks smaller, but the actual market selling pressure hedge is not reduced—in fact, it’s even stronger.

Let's look at a core data set. The initial total supply of BNB was 200 million tokens. Currently, the total burned has reached 65.64 million tokens, leaving a circulating supply of 136 million tokens. The deflationary pace has been steadily progressing, only the manifestation has changed due to fluctuations in the token price. Understanding this is key to seeing the long-term ecological logic of BNB.