CEO Binance has been discussing an Accelerated Burn program for BNB, How does the BNB price affect?
Binance CEO Changpeng Zhao (CZ) has announced yesterday that his team will be discussing ways of accelerating the BNB coin burn program.
This weekend, our team has been discussing an Accelerated Burn program for #BNB. More details to come. Also welcoming any suggestions or bright ideas.
— CZ Binance (@cz_binance) December 19, 2020
CZ also request crypto hodlers to provide some suggestions as to how the current program can be adjusted.
According to the whitepaper of Binance exchange released in 2017, they wrote:
“Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining.”
BNB Will Benefit from an Accelerated Coin Burn Program
BNB’s total supply stands at 176,406,561, according to Coinmarketcap. This means that Binance has accomplished roughly 24% of the journey towards destroying 100 million BNB.
Binance exchange launched in July 2017, which means 24% of the task took roughly 42 months. Doing the math, the current BNB burn program might take another 126 months (10.5 years) to achieve its ultimate goal of destroying 100 million BNB.
However, depending on the profitability of Binance will give the figure sooner or longer. This year, CZ expects Binance to hit a profit of $ 1 billion, the highest number ever since the company’s inception.
If Binance formulates a new BNB burn program, the final goal will be achieved faster and the diminishing supply of BNB will have a positive effect on its value based on demand.
The news of a possible accelerated coin burn program for BNB has already caused a FOMO reaction. At the time of writing, BNB is trading at $ 33 after the day’s opening at approximately $ 30. This is a 10% increase in less than 24 hours and is a sign of a bright future for BNB.
BNB chart 1 year | Source: Coingecko
BNB has also risen 150% in the past 1 year, less than 16.3% from the ATH level set on June 22, 2019, after the IEO boom.
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