Our daughter was completely addicted to her binky. She'd have that thing in her mouth 24/7. Around 2.5 years of age, I noticed that her two front teeth were starting to slightly jut out. That's when I started telling her about how the binky fairy will let "big kids" know when it's time to pass the binkies on to the little babies who need them.
I let this thought simmer for 2 weeks at most, then a letter from the binky fairy arrived on darling fairy paper (from Michael's or a craft store) in a whimsical font. The letter told our daughter that a new baby had been born that needed binkies and that since she was such a big girl and really didn't "need" them anymore, that the fairy would like her to package up the binkies and mail them off on such and such date (it was 3 days after the letter arrived).
On the third day, we packaged them up and ceremoniously took them to the mail box. Four days later, a thank you letter arrived from the fairy along with a picture of the newborn baby that the binkies went to (my coworker had just had a baby and sent out emailed pics, so it worked perfectly).
Our daughter felt like such a BIG GIRL after that letter arrived and she carried it around with her for a few weeks and showed EVERYONE the picture of the baby that her binkies went to.
We also went out and purchased a treasure chest of dress-up clothes for our daughter as a special treat for this milestone and to keep her mind off the binkies.
Considering how addicted our daughter was to those things, this transition went really smoothly. The first night w/out the binky was a teeny bit rough, but it passed quickly.
You may not have to go to such measures, but like I said, our daughter wasn't going to give the thing up on her own! ;) Good luck.