Binance yesterday completed its eighth quarterly “burn” of BNB. With this move, the exchange follows its commitment to reduce the total token supply periodically. However, along with the obligatory token burn, Binance CEO Changpeng “CZ” Zhao announced that his company would relinquish its entire BNB allocation as part of its efforts to promote the growth of the ecosystem. He said:
“Today, on behalf of the Binance team, I am announcing that we will give up all of our BNB allocations and contribute towards our commitment to burning a total of 100 million BNB. This commitment starts during today’s quarterly burn, during which 808,888 BNB (currently worth US$23,838,000) is being burned.”
That is to say, 40% of the total BNB supply that belonged to the Binance team from now on will become part of the cycle of periodic token burning that the company maintains. In other words, the company won’t allocate any BNB for itself starting today.
In his most recent ask-me-anything event, CZ emphasized Binance’s commitment to burn over $2.5 billion worth of BNB which belongs to the Binance team
“We are not going to cash a penny of that out… we’re going to burn it all.”
BNB Is Performing Extremely Well Thanks to Binance’s Smart Decisions
The immediate effect of this news was quite predictable. A strong enthusiasm in the trading community led the token to outperform any other crypto in CoinMarketCap’s top 10.
BNB performed better than any other crypto of the 10 cryptocurrencies with the largest market cap. | Source: CoinMarketCap
Expectations about a decrease in the total supply of a currency always generate an increase in the value of its token. This effect is also seen in other cryptocurrencies as cuts of this type approach (a kind of “halving effect” similar to what many expect to happen soon with Litecoin and next year with bitcoin.)
CZ Focused on Building a Better and Profitable Future