Changpeng Zhao has recently announced the 8th Binance Coin (BNB) burn that takes place every single quarter. The cryptocurrency exchange Binance burns a portion of the BNB coins available in the market with 20% of the profits they have each of the quarters. This time, the company not only burned these funds but the team behind Binance gave up all their BNB allocations. This was announced by the founder and CEO of the platform in a blog post uploaded a few hours ago.
Changpeng Zhao Announces New BNB Burn
Mr. Zhao wrote a blog post in which he announces that the Binance team will be giving up all of their BNB allocations and contribute them towards the commitment to burning 100 million BNB. Binance conducts a quarterly burn of 20% of the company’s profits until they will burn 100 million BNB tokens.
Until now, the exchange has burned around 12% of their goal, meaning they still have to burn more than 88 million BNB coins in the coming years. The firm has also informed that this quarterly burn ended up with 808,888 BNB less in the market, which included part of the coins of the team behind the exchange.
As the company explains, 40% of the total BNB supply, around 80,000,000 BNB worth close to $2.4 billion was allocated to the Binance team. This was created as a reward for the platform they created and for the job they did during the last years. Zhao wrote that they are giving this up and contribute to this BNB burn.
In addition to it, he commented:
“With this change, we’ll still burn BNB based on trading volume on Binance per quarter. But this time, the Binance team has given up our token allocation. 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 team behind BNB informed that they are also going to be burning around 80 million from their allocation first, and the remaining 9,000,000 BNB tokens will be burned by Binance.com in further quarters. Zhao explained that this decision means that the Binance team allocated 0 BNB to themselves from the original supply and all BNB and funds gathered by the team will come from the services that they provide.
At the time of writing, Binance Coin is the 6th largest digital currency in the market surpassing EOS as the 7th most popular coin. The virtual currency has a market capitalization of $4.53 billion and a price per coin of $32.