According to the latest reports, Binance team is all set to burn off all the BNB tokens that were allocated to them in order to burn a whopping hundred million BNB in total. The update was announced officially by Binance through Twitter on 11th July 2019. A detailed blog post was published the following day for throwing more lights on the matter.
— Binance (@binance) July 11, 2019
As per the blog, the 8th Binance Coin burn commences today with a quarterly burn wherein 808,888 BNB will be burned. This amount is worth about 23,838,000 US Dollars.
$23M USD equivalent of $BNB, burned from the Binance Team allocations. The only time we "spent" the Team BNB allocation. I will talk a bit more about that in my live AMA, in about 10 min or so. https://t.co/KQhqf3FJmN
— CZ Binance (@cz_binance) July 12, 2019
Changpeng Zhao, CEO of Binance who is widely referred to as CZ, said that rather than associating BNB with market activities or holding BNB buybacks, the Binance team will be burning all of their tokens first – all the 2.4 billion USD. Now, the team will be fulfilling their commitment to developing the ecosystem of Binance minus any BNB left from the allocation done initially.
What’s important to note is that this is not going to make any difference to the total supply of the Binance Coin. The supply still would be BNB 100,000,000. At present, the coin’s total supply is 189,000,000, which implies that still, 89,000,000 BNB requires to be burned. Hence, first, 80,000,000 BNB will be burned off from the team allocation while the rest of the tokens (9 million BNB) is going to be burned off by the exchange Binance.com.
The frequency, as well as the schedule of the burn, are going to remain the same like before, as per the blog. The targeted burn rate will be 20% of the revenue of Binance from its previous quarter.
Continuing further, CZ said that this move showcases the fact that the team of Binance isn’t driven by money but are on a greater mission. He also shed light saying that in spite of burning all their allocations, it’s likely that the team of Binance will continue being some of the biggest BNB holders because the revenues of Binance are in Binance Coin (BNB) and they are paid in Binance Coins. These tokens are the earned BNBs, not just those acquired from the allocation during the ICO.