Bullish Change For BNB Price As 808,888 Of Teams Binance Coins ($23M) Destroyed In Quarterly Burn
- Binance team to give up all of its, 40% of total supply, BNB allocations
- Committing to burn all of its US$2,400,000,000 worth BNB
- Eventually, a total supply of BNB will come down to 100 billion, Binance CEO Changpeng Zhao
The world’s largest exchange, Binance has announced the 8th quarterly BNB burn on July 12. These burned coins belong to the Binance team, as part of their pledge to give up all of their BNB allocations.
For the 8th time now, Binance has burned its native currency BNB. This time a total of 808,888 that’s worth about $23.8 million US dollar has been burned, the lowest number of BNB burned till now.
The first four sessions saw an increase in the amount of BNB burned and the last four has been on a constant drop. However, given the fact that BNB price is currently at its highest at $29.47, the highest ever in any burn sessions, it’s neither the highest or the lowest BNB value burned.
Interestingly, these burns are cutting down the supply of BNB, putting downward pressure on it while demand keeps on rising, this will positively affect the price of BNB.
BNB Eventual Total Supply Would Be 100 Billion
Binance CEO Changpeng Zhao in the official announcement confirmed that the entire 40% of the total BNB supply that is 80 billion, allocated to the Binance team as a reward for their work would be contributed to the BNB burn.
The team is giving up currently worth US$2,400,000,000 BNB which shows the “Binance team is not money-driven.” It is also their way to double down on its mission to change the world and spread the freedom of money, said Zhao.
Still, the Binance team will continue to be one of the largest holders of BNB, as most of the exchange’s revenue is in BNB and as Zhao says, “we are paid in BNB.”
The BNB burn will still continue each quarter but the team will burn their own tokens first.
However, there isn’t much of a difference and the supply schedule will decrease at the same rate as before.
Mathematically the two methods are the same
Previous: Team vests BNB -> Sells on Market -> Binance buys back BNB with 20% of profits
Now: Binance uses 20% of profits to buy and burn BNB from team
— Richard Raizes (@richardraizes) July 12, 2019
However, the difference, Richard Raizes, CIO and General Partner at Plutus21 says is that this new structure makes BNB more likely to be seen as a utility token and listed on U.S. exchanges.
“Profits are de-emphasized for compliance purposes even though are still used in the burn calculation,” added Raizes.
The eventual total supply of BNB will come down to 100 billion from the current 189 billion. This constraint on BNB supply is expected to have its price flying.
“Overall, this change is bullish for BNB,” said Raizes.
Trading at $31.68, BNB is currently up about 5.89 percent, just 19% away from making a new all-time high.