Quick take:
- The team at Binance will be considering ways of accelerating the BNB coin burn program
- The current BNB coin burn is done quarterly with the exchange destroying the equivalent of 20% of profits during that time period
- An accelerated coin burn program will have a positive effect on the value of BNB
The CEO of Binance, Changpeng Zhao, has announced via Twitter that the team at the exchange will be discussing ways of accelerating the BNB coin burn program. Mr. Zhao went on to request his Twitter followers to provide some suggestions as to how the current program can be adjusted. His exact statement was as follows.
This weekend, our team has been discussing an Accelerated Burn program for #BNB. More details to come. Also welcoming any suggestions or bright ideas
Current Binance Coin Burn Program for BNB
The crypto exchange of Binance has remained true to the blueprint of the quarterly coin burn set on the project’s whitepaper back in 2017. According to the document, the BNB coin burn was designed as follows.
- To be performed every quarter
- Binance will use 20% of its profits during that time period, to buy back BNB from the market and destroy them
- The final goal will be to destroy 50% of the initial 200 Million BNB minted during the ICO
Binance Coin Will Benefit from an Accelerated Coin Burn Program
A quick glance at Coinmarketcap reveals that Binance Coin’s total supply stands at 176,406,561. This means that Binance has accomplished roughly 24% of the journey towards destroying 100 million Binance Coin (BNB).
Binance recently celebrated its third anniversary this July which means 24% of the task took roughly 3.5 years. Doing the math, the current coin burn program might take another 10.5 years to achieve its ultimate goal of destroying 100 million Binance Coins.
If the team at Binance formulate a new coin 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 knee-jerk reaction in the crypto-markets. At the time of writing, Binance Coin (BNB) is trading at $34 after opening the day at approximately $30. This is a 13% increment in less than 24 hours and a sign of what the future holds for Binance Coin (BNB) moving forward.