in ,

Binance Team Vows to Burn Entire 80 Million BNB Holding

Binance has vowed to burn the entire 80 million BNB, worth $2.4 billion, originally allocated for the team in what it calls a continued commitment to growing binance coin and the cryptocurrency exchange.

Billion-Dollar Coin Burn

As apart of its quarterly coin burn, cryptocurrency exchange Binance published an update detailing the destruction of over 800,000 BNB on July 12, worth $24 million. The latest coin burn was the eighth completed destruction by the exchange, as apart of its whitepaper commitment to burning 100 million coins.

The current total supply for BNB is 189 million tokens, which Binance wants to eventually reduce to 100 million. According to the cryptocurrency exchange’s whitepaper 40% off the total supply (80 million BNB) was originally allocated as a reward for the Binance team.

However, the exchange is now pledging to burn their entire allocation. Binance reports they are “giving up” on their BNB reward, and will contribute their individual coins to the quarterly burn as a way to “double down on our mission to exchange the world and spread the freedom of money.”

binance bnb coin burn july 2019Binance completes the eighth quarterly coin burn for BNB | Source: Binance

Binance Team Doubling Down

The press release explains that Binance will continue to burn BNB based upon quarterly trading volumes, but that the allocated coins will be destroyed first as the total supply is reduced to 100 million over the coming years.

“We are now committing to building the Binance ecosystem without getting any BNB from the initial allocation. The team will burn their own tokens first. All US$2,400,000,000 of it!”

The update reiterates that Binance will not keep a single token from the original whitepaper amount, and that all bnb held by team members has been earned or purchased independently.

Changpeng Zhao, CEO of Binance, explained his motivation,

“This shows that the Binance team is not money-driven. We are here on a mission. Let’s work together to increase the freedom of money.”

Binance reports that it will contiue to be the largest holder in BNB, as the exchange collects the majority of its revenue in the native token. In addition, staff members are paid in binance coin, contributing to the growing trend among exchanges to pay employees with crypto.

Featured image by Marco Verch, Flicr, CC by 2.0

Be Updated
CT is the leading digital media, events and information services company for the crypto asset and blockchain technology community.

What do you think?

115 points
Upvote Downvote

Written by Ravi Gupat

Ravi grew up in India and graduated in Economics. He is a serial entrepreneur who has founded and exited several companies in tech and media over the past 15 years. He is also an early stage investor and advisor in various blockchain-based companies.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

0

Comments

0 comments

Chainlink (LINK) Long Term Price Analysis

CNBC Analysts, Winklevoss Twins Discuss Facebook’s Libra & Bitcoin