Binance burns BNB tokens worth $24 million in its quarterly burn program

  • 12 July 2019, Friday, 08:10

Binance is the world’s leading cryptocurrency exchange by trading volume, well-known for its transparency and its focus on keeping consumers happy. Binance’s native token, BNB, has recorded tremendous growth throughout 2019, breaching its all-time high on a couple of occasions.

Binance recently completed its 8th quarterly BNB token burn program, wherein 808,888 BNB tokens worth $23.8 million were taken out of circulation. However, the burned tokens were all owned by the Binance team, and the decision to give the tokens away was to ensure that all BNB tokens in circulation are organically created, rather than pre-owned. The Binance team were given 40% of the total supply at the time of launch, owing to its contribution to the Binance ecosystem.

The Binance team received a total of 80 million BNB tokens amounting to $4.2 billion, but CEO Changpeng Zhao has assured that all these tokens will be eventually burnt. After the commencement of the quarterly token burning program, CZ said that the exchange is “committed to building the Binance ecosystem without getting any BNB from the initial allocation.”

The BNB tokenomy

The total circulating supply of BNB tokens has been capped at 100 million. However, there are 189 million in circulation currently, and the surplus of 89 million tokens held mostly by the Binance team will be eventually burnt.

CZ clarified that even after all the surplus tokens are burnt, team members would still be among the largest holders of the BNB token since most of Binance’s finances are dealt in the native token, including staff payments.

Binance has maintained a status quo when it comes to most trusted exchanges in the decentralized space, and the CEO himself interacts with the community from time to time to explain the future course of the platform.